x

Economy

Turkish Lira Slides to New Low after Jump in US Inflation

November 11, 2021

ANKARA — The Turkish lira slid to a record low against the US dollar again Thursday after a surge in US consumer prices inflamed concerns over President Recep Tayyip Erdogan’s push to cut interest rates.

The lira dropped to an all-time low of 9.97 against the dollar early Thursday before settling at around 9.93 against the U.S. currency. The Turkish currency has lost some 25% of its value since the start of the year.

The lira’s slump came after U.S. consumer prices jumped 6.2% in October compared with a year earlier, the highest inflation rate since 1990, according to the U.S. Labor Department. The increase was 0.9% from September to October.

Erdogan has long been pressing for lower borrowing rates to boost growth. Economists generally view higher interest rates as a curb on inflation, but the Turkish president has repeatedly argued that high interest rates cause prices to increase.

Despite rising inflation, Turkey’s Central Bank has cut the main interest rate by 3 percentage points to 16% from 19% since September, compounding a long run of losses. Turkey’s official inflation rate hit 19.9% in October.

Earlier this year, Erdogan fired the previous Central Bank governor after he raised interest rates in a bid to tame inflation.

RELATED

ISTANBUL — A powerful storm pounded Istanbul and other parts of Turkey on Monday, killing at least four people and causing havoc in the city of 15 million people, reports said.

Comments

Your email address will not be published. Required fields are marked *

Top Stories

Society

THESSALONIKI - A symbol of holiness around the world – but now also of some defiance against COVID-19 measures - Mt Athos has become a strange brew of monks supporting restrictions to slow the pandemic and those who don't believe in them.

Politics

ANKARA - Trying to sway international opinion against Greece, Turkey said its Coast Guard rescued 29 refugees allegedly pushed back into Turkish waters in the Aegean Sea by Greek forces.

Sciences

ATHENS - More than 130 early-career researchers, PhD candidates, and postdocs from the Foundation for Research & Technology – Hellas (FORTH) have dedicated the last five years to research through the ARCHERS program, with the support of the Stavros Niarchos Foundation (SNF).

Video

White House Holiday Decor Honors COVID-19 Frontline Workers

WASHINGTON — Holiday decorations unveiled Monday for Joe and Jill Biden's first White House Christmas honor frontline workers who persevered during the COVID-19 pandemic.