The position of Turkey’s lira continues to weaken as the currency’s value dropped by 1.4 per cent. The rise in inflation is the primary reason for the unfavourable conditions for the investors.
Turkey is currently experiencing its highest inflation rate over the past 19 years. The rate-cutting policy has also created problems for investors. In comparison to the dollar, the lira’s value was recorded at 13.15. On Monday, the value stood at 12.96. During the last two weeks, the currency had also hit an all-time low before the government took necessary measures for the currency’s rebound.
The lira has been the worst-performing currency of emerging markets. It has declined by 44 per cent, the lowest during Recep Tayyip Erdogan’s tenure. The rise in food, drinks, and transportation rates have raised consumer prices by 36.08pc. Erdogan has said that he’s concerned about the conditions and the government would bring the value in single digits.