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Turkey lira hits new record low

Image of Turkish Lira [file photo]
Turkish Lira [file photo]

The Turkish lira hit a new record low against the US dollar yesterday to reach 4.213 after consumer price inflation increased to 10.85 per cent year-on-year.

According to the Turkish Statistical Institute, consumer prices increased 1.87 per cent in April compared to the previous month.  Meanwhile, core inflation hit 12.24 per cent year-on-year.

Investors’ sentiment was negatively affected after Standard & Poor’s downgraded Turkey’s sovereign rating. The Turkish government announced this week a $6 billion social reform and debt restructuring package.

The lira has been one of the worst performing currencies in emerging markets since the beginning of the year after it fell to a record low of 4.2487 lira against the US dollar.

Inflation is a source of growing concern for the Turkish government as it prepares for early parliamentary and presidential elections on 24 June.

Read: Who is being targeted, Turkey or Erdogan?

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