A woman changes money at a currency exchange office in central Istanbul, Turkey, May 23, 2018. REUTERS/Murad Sezer
Middle East Monitor: Turkish lira hits record low, days after Erdogan's new government appointed
Currency falls after president appoints son-in-law as new finance minister, as economists fret over central bank independence
The Turkish lira hit a record low overnight Wednesday, dispelling hope that the currency's instability would end after June's snap election.
It hit a low of 4.9767 lira to the US dollar in overnight trading with Asia after President Recep Tayyip Erdogan said on Wednesday that he expects interest rates to fall, despite persistently high inflation.
Erdogan's aversion to raising interest rates is part of what many describe as an unorthodox economic policy, as higher interest rates are traditionally seen as a way to temper inflation - which had climbed to 12 percent by June - and prevent devaluation.
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WNU Editor: Turkish President Erdogan wants the best of all worlds .... a continuation of his government's policy to print money, low intrest rates, and a stable lira. Will he succeed? I have been studying and trying to understand economics and the history of economies my entire life .... I have never met a country or government that has been able to accomplish such a feat, and I do not expect Turkish Presdient Erdogan to do any better.
More News On The Slumping Lira
Turkish lira hits record low after Erdogan interest rate comments -- Reuters
Turkey lira slumps to new record lows after Erdogan commments -- Express Tribune/AFP
Lira Heads for Steepest Drop in Almost 10 Years in Week of Drama -- Bloomberg
Turkey’s battered lira takes another hit -- Al-Monitor
Turkish bankers try to drag Erdogan toward monetary sanity to no avail -- Desmond Lachman, The Hill
