Fed, Erdogan Explain 90% of the Turkish Lira’s Meltdown
(Bloomberg) -- Bloomberg Economics estimates the political takeover of the Turkish central bank and higher U.S. rates explain most of the lira’s 40% decline against the dollar this year. Negative sentiment is the main driver -- it turned sour in March after the unexpected dismissal of the central bank governor and intensified recently as a result of politically-motivated cuts in interest rates. The global environment is also working against the lira, with higher U.S. interest rates pulling the currency down.
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