Turkish pound hits record low against central euro – Central Bank executive resigns

LAST UPDATE 20:56

The Turkish pound fell to an almost record low on Tuesday following new statements by Turkish President Recep Tayyip Erdogan which opposes any increase in interest rates.

The currency reached a low of 13.49 (losses of 4.5% per day) per dollar in electronic trading, approaching the last low of about 13.52 against the dollar (November 23), after renewed monetary policy concerns. of the country and concerns about the Omicron variant of Covid-19. The fall in the pound was shocking – it fell from about $ 8.5 at the end of August to more than $ 13 per dollar in just three months.

Nevertheless against the euro, the currency reached a new record low, as the exchange rate reached 15.23, exceeding the previous high of 15.20 pounds per euro, which was also recorded on November 23.

Erdogan has repeatedly refused to raise interest rates to impose rising double-digit inflation, and the pound has plummeted in recent years. Inflation in Turkey is now close to 20%. Erdogan fired three central bankers for failing to align with his belief that interest rates should not rise.

“I have always argued for lower interest rates and I have reiterated that interest rates should be lower. I have never supported and will not support raising interest rates,” Erdogan told the Turkish press on Sunday.

Earlier, Turkish ntv reported, citing Bloomberg, that the head of markets of the Central Bank of Turkey, Doruk Kucuksarac, who was appointed to the position in August 2019, has submitted his resignation. TCMB Deputy General Purchasing Director, Hakar Er, has taken over.

Petros Kranias