The slump for the Turkish pound continued – Falling up to 1.7% on Thursday

LAST UPDATE: 20.30

The Turkish pound fell as much as 1.7% on Thursday, dipping more than 20% in the last nine sessions, amid continuing investor worries about inflation in the country, as it has climbed to a 19-year high. after a series of unorthodox interest rate cuts.

In particular, as reported by Reuters, the Turkish currency fell to 13.89 pounds against the dollar, before slightly reducing its losses and reaching 13.84 pounds the dollar at 20:00 Greek time.

It is noted that last year, the Turkish pound marked its worst year since President Recep Tayyip Erdogan’s Justice and Development Party came to power in 2022, recording a free fall of 44%.

Simone Kaslowski, president of Turkey’s top business association TUSIAD, said Wednesday night that the jump in annual inflation to 36.1% clearly shows the need for a review of Ankara’s policy measures.

“If these are the right steps, why is inflation so high?” He reportedly wondered during a panel discussion on the economy hosted by the T24 news website.

Market interest rates were rising despite lower interest rates from the country’s central bank and dollarization continued to intensify, Kaslowski added, wondering if Turkey was “losing the big picture as it turns to short-term interim solutions”.

“Time is precious. As a country, the cost of making good use of this time is even higher now than it used to be.”

Meanwhile, Finance Minister Nureddin Nebati said on Wednesday that the government would now prioritize the fight against inflation, but added that Ankara had abandoned “orthodox policies” and set its own course.