Five days after the Turkish Central Bank’s interest rate hike of 625 basis points, a record high during President Recep Tayyip Erdoğan’s terms in office, the country’s national currency has lost almost all its gains by plunging back to over 6.35 against the US dollar on Tuesday.
The lira, which was at 6.41 just before the central bank’s decision on Sept. 13, saw less than 6 to the dollar last week.
Following the 625 basis point hike, Turkey’s interest rates reached 24 percent, the second highest in the world.
President Erdoğan, a “self-declared enemy of interest rates,” slammed the central bank for increasing the rates, saying his patience had limits.
According to analysts the recent loss in value of the lira is related to low expectations from the Middle-Term Program, an economic recovery plan that will be announced on Thursday by Treasury and Finance Minister Berat Albayrak.
Turkey has been facing a currency crisis as the country’s currency has lost more than 50 percent of its value since the beginning of the year.