The Turkish lira plunged to record levels on Tuesday after President Recep Tayyip Erdogan maintained his support for interest rate cuts, warning his country was in a “war of economic independence.”
The Turkish currency traded at over 13 lire to the dollar, a decline of 15 percent, before recovering slightly from the historic decline.
Turkey faces the worst currency crisis since August 2018, when the pound’s value hit historic lows after a row with then-US President Donald Trump.
Turkey’s central bank bowed to Erdogan’s pressure on Thursday and cut its key rate from 16 to 15 percent despite rising inflation and a rapidly depreciating currency.
“Traders were finally overthrown and completely lost patience with the policies of the central bank,” Craig Erlam, senior market analyst at OANDA, told AFP.
“There is a reason central banks are independent and that is what happens when the gap is crossed. A perfect storm of politically motivated monetary policy, complete disregard for inflation and other central banks adopting a more reasonable approach, “he said.
Erdogan, a staunch opponent of high interest rates, has always built his popularity on a reputation for forging strong economic growth and improving the incomes of families across the country.
He is known for his unorthodox belief that high interest rates cause inflation instead of helping to pack it down.
The Turkish leader was defiant and defended current policies in a speech to the nation after a cabinet meeting on Monday.
“We see the game played by those on currency, interest and price hikes… and show our willingness to pursue our own game plan,” he said.
“We will emerge victorious from this war of economic independence with the help of Allah and our people.”
-‘Admit you’re wrong’-
The pound has lost more than 40 percent of its value against the dollar since the start of the year and the annual inflation rate has reached nearly 20 percent, four times the government’s target.
“Surely someone in the palace has the guts to slap Erdogan on the shoulder and say, ‘Hey man, you really fucked up,'” BlueBay Asset Management economist Timothy Ash said in a statement. -mail to customers.
“’Admit you were wrong, step aside and let someone who knows what they’re doing run the CBRT (central bank),” he said.
The central bank has cut its key rate by 400 basis points to 15% since August.
Analysts believe the blizzard of economic woes in the country could put pressure on the president as he prepares for the 2023 election amid signs of consolidation among the opposition, which has failed until present failed to seriously challenge him.
strawberries-fo / once / leme
The mention sources can contact us to remove/changing this article
What Are The Main Benefits Of Comparing Car Insurance Quotes Online
LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos
to request, modification Contact us at Here or [email protected]t.exbulletin.com