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Turkish lira drops 15% as president defends plans to cut interest rates

Wednesday, 24 November 2021 7:01 PM [ Last Update: Wednesday, 24 November 2021 7:01 PM ]

Rahshan Saglam
Press TV, Istanbul

The Turkish lira crashed on Tuesday by 15 percent against the US dollar. Economists blame new Turkish government’s plan to cut interest rates aimed at resolving the economic crisis Ankara is facing.

President Erdogan has forced the central bank to cut interest rates three times. This year, the lira shed 45 percent of its value with investors losing their confidence in the Turkish currency and the country’s economy.

Turkish president blames foreign countries for the lira crash saying the high interest rate would not lower inflation.

Critics say the ruling party is getting the country involved in what they call “hazardous economic experiment.” They call on the government to abandon such irrational actions immediately and return to policies aimed at protecting the Turkish Lira’s value.

People have taken to the streets, both in Ankara and Istanbul calling on the AK ruling party and President Erdogan to step down. Demonstrators say the drop in lira is affecting their daily life as everything is becoming more and more expensive.

The drop in Lira affects Turkish people’s daily lives, with many considering the ruling party not being able to contain the crisis, which would probably affect poll results in the upcoming elections.

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