Turkish Lira Crashes to Record Low

The Turkish lira crashed today, sinking 5% to the record low before recovering a bit. The currency still trades far below the opening level.

Analysts attributed the crash to concerns about the direction of monetary policy under President Tayyip Erdogan. While some specialists speculated that Turkey’s central bank may raise interest rates to prevent depreciation of the currency, others said that the bank is not independent enough to do so as long as Erdogan remains in power. The presidential election will happen on June 24, but most experts believe that Erdogan will keep his seat.

USD/TRY jumped 4.07% to 4.8592 as of 10:58 GMT today.

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