News / Turkey

Turkish lira sinks to record low against US dollar

Friday, 30 January 2015 4:17 PM [ Last Update: Friday, 30 January 2015 6:15 PM ]

The file photo shows Turkish lira notes.

The value of the Turkish currency has plunged to its lowest level against the US dollar amid reports that the country’s central bank may lower interest rates.

On Friday, the lira weakened to 2.43 against the US dollar, showing a two-cent decrease in comparison with the previous day.

The loss of value came three days after Turkey’s Central Bank Governor Erdem Başçı said the bank might consider lowering interest rates in an extraordinary meeting next week.

"As a result of rate cut expectations, the lira remained under depreciation pressure," said Deniz Cicek, a Turkish economist, on Friday.

Meanwhile, the Turkish economy minister said the lira slump need not cause any worry, noting that the country will push ahead with its monetary policies.

"We are already too late to cut interest rates. I don't believe that the fall of lira would have an impact on rate cut expectations," said Nihat Zeybekci, adding, "It is pointless to tolerate high interest rates due to concerns."

Lowering the interest rates is the latest in a string of measures taken by President Recep Tayyip Erdogan in a bid to revive Turkey’s economy.

In 2014, the Turkish central bank increased the interest rate to prevent an acute economic crisis after the drastic fall of the lira.

FNR/HMV/SS

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