Turkish lira falls to new lows – new test for central bank

Dusseldorf The drastic fall in the lira continues. Turkey’s national currency hit new lows against the dollar and euro on Tuesday. In return, the US currency rose above the 26 lira per dollar mark. Compared to the European common currency, it was quoted at up to 28.613 lira per euro.

Experts do not assume that an end to the price losses is in sight – on the contrary. This is also due to the new strategy of the central bank.

The Turkish central bank and its new boss Hafize Gaye Erkan had raised the key interest rate by 650 basis points last week, from 8.5 to 15 percent. In view of the still very high inflation of around 40 percent, however, many economists had expected a larger increase.