Turkish lira at new lows after Erdogan fires bank officials

Published October 14, 2021 2:06 AM

ANKARA, Turkey (AP) — The Turkish lira has hit record lows against the dollar after President Recep Tayyip Erdogan fired three senior central bank officials. The move Thursday heightened concerns over the Turkish leader’s interference in the bank’s activities. The lira weakened by 1% overnight to reach 9.19 against the dollar. It was trading at 9.14 against the dollar early Thursday. Last month, the bank cut the main interest rate by 1 percentage point, bowing to Erdogan’s demand for lower borrowing rates to boost growth. Economists generally view higher interest rates as a curb on inflation, but the Turkish president has repeatedly said the opposite — that a high interest rate causes prices to rise.

Article Topic Follows: AP National Business

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