The Turkish lira is trading at its lowest level ever against the US dollar at levels of 9.0293 this morning, Tuesday, 12 October, in decline for the third consecutive session, affected by the recent US dollar rises that affected emerging market currencies, in addition to the continuing market fears that the Turkish Central Bank will continue to reduce prices Interest as happened in September unexpectedly.

The Central Bank of Turkey cut interest rates on the 23rd of last September by 100 basis points to 18% after pressure exerted by Turkish President Recep Tayyip Erdogan, who dismissed three central bank chiefs in the last 20 months due to political differences and disagreement over interest rates.

Inflation rises in Turkey are a major factor pressing on the Turkish economy, as data released at the beginning of the week showed that inflation rose in September on an annual basis to 19.58%, the highest level since March of the year 2019, and the Central Bank aims to reduce it to 16% by the end of this year, while the bank targets an inflation rate 5% over the medium term.

The recent decline in the price of the Turkish lira was caused by the fact that the last interest cut decision in September was not expected in the markets and according to opinion polls, but the declines of the Turkish lira since the beginning of the year 2021 and its loss of more than 16% of its value against the US dollar, of which 6.5% loss in September only reflects the confused decisions and interventions in the decisions of the Turkish Central Bank.