Turkish lira hits record low against dollar

Turkey’s currency tumbled late on Wednesday below its May low, nearing 5 lira to the dollar
Thursday, 12 July 2018 18:37

Turkey's lira touched a record low overnight after President Tayyip Erdoğan appointed his son-in-law as finance minister this week.

The currency has lost more than a fifth of its value against the dollar this year, pushing inflation to its highest in 14 years and squeezing dollar-indebted companies across the economy.

The lira weakened as far as 4.9767 in Asian trade overnight, its weakest on record, before recovering. It was at 4.8145 at 1028 GMT.

Erdoğan on Monday named his son-in-law Berat Albayrak as treasury and finance minister, in a cabinet reshuffle for his second term under a new system that hands the head of state expanded powers.

The lira has lost over six percent in value against the dollar since his appointment and fell sharply late on Wednesday to new record lows precariously close to 5 to the dollar.

"I believe we will see interest rates fall in the period ahead," Erdoğan told reporters after his first foreign trip following the inauguration. "I am sure not just our state banks but our private banks will shoulder responsibility if necessary," he said.