The Turkish lira lost 4% of its value on Tuesday after an unprecedented and historic depreciation against the US dollar.
According to Pak Sahafat news agency from Reuters, the unprecedented devaluation of the Turkish lira, which made history on Monday, was prompted by concerns about another interest rate cut this week.
The lira fell 7 percent on Monday to an all-time high of 15 lira against the dollar.
The unprecedented devaluation of the Turkish lira, of course, did not last long, and with the intervention of the Central Bank, it returned slightly for the fourth time in the last two weeks.
On Sunday, thousands of people demonstrated in Istanbul, Turkey, to protest against rising prices and inflation.
More than 5,000 people protested in Istanbul at the invitation of Turkish unions and trade unions to protest the sharp devaluation of the lira.
Protesters protested high inflation and a sharp drop in Turkey’s monetary value, demanding an increase in their legal base.
The annual inflation rate has reached 21.31 percent according to official Turkish statistics, but observers, independent experts and protest groups put the actual inflation rate at 58 percent.
Read more: Turkey is under pressure from Western countries / Consequences of rising dollar: https://www.paksahafat.com/en/?p=15895
The demonstration took place about 10 days ago when Turkish President Recep Tayyip Erdogan accepted the resignation of Lotfi Alvan, the country’s Minister of Treasury and Finance.
Economists point out that due to the devaluation of the Turkish Lira and pressure to reduce interest rates, and that two central bank governors have been fired by Erdogan so far, given the current economic situation and the unfavorable trend in the Turkish economic situation, the dismissal of ministers though. In the short term, it may appear as a solution, but the lack of fundamental changes in infrastructure, as well as respect for the independence of various institutions, including the central bank, will perpetuate the country’s poor economic situation.
Since the beginning of this year, the Turkish lira has lost almost half of its value against the dollar, trading at 14.4 lira per dollar.