© Reuters. The Turkish lira continues to fall and closes the week with a fall of 9%
Istanbul, Nov 26 (.) .- The Turkish lira maintained its downward trend this Friday and closed the week with an accumulated fall of around 9%, when the euro was exchanged for 14 liras and the dollar for 12.34 at the last minute of the day.
Compared to its opening values today, of 13.7 12.1 lira / dollar, the decline of the Turkish currency is moderate, since it has recovered part of the ground lost hours before, when the decision of an Istanbul court to deny the release of activist Osman Kavala caused a 2% drop.
The ruling could lead the Council of Europe to impose sanctions on the Ankara regime at its meeting next Tuesday, since that body to which Turkey belongs had demanded the release of Kavala, in prison without sentence since 2017, before the end of November.
The fall in the currency worsened shortly after, during a speech by Turkish President Recep Tayyip Erdogan, who again defended the need to continue lowering interest rates so as not to “crush the farmers.”
It was precisely the decision of the Central Bank last week to cut rates to 15%, well below inflation, which is close to 20%, which destabilized the lira.
The biggest drop of the week, of 11%, was suffered by the Turkish currency on Tuesday, in reaction to a fierce defense of the policy of lowering interest rates that Erdogan had made in a speech delivered the day before.
That drastic fall, which meant a 20% loss in the value of the currency since the beginning of the month, sparked political debates and street protests, and the opposition has unanimously called for early elections.
Erdogan, however, has rejected this claim and has assured that the elections will be held, as planned, in June 2023.
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