The Turkish lira fell 5% on Monday after witnessing its worst performance in 2021 since President Recep Tayyip Erdogan came to power nearly 20 years ago as concerns persisted over high inflation and unconventional monetary policy.
The lira fell to 13.92 pounds per dollar, after closing Friday at 13.1875 pounds per dollar.
Market attention has focused on December inflation data in release today, after weekend data showed retail prices in Istanbul rose 9.65% month-over-month in December to hit an annual rate of 34.18%.
The lira, which is by far the worst of all emerging market currencies in 2021, lost around 80% against the dollar over the year, including 19% in the last week alone.
Savings of the Turks have shrunk in recent months due to the depreciation of the lira and its all-time low of 18.4 against the dollar in the past week, but recovered after the announcement of the government’s program to protect the domestic deposits from depreciation losses against foreign currency.
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