The Turkish lira fell near the level of 9 Turkish liras per US dollar on Friday.
The decline came after reports from Reuters, from informed sources, who requested anonymity, that Turkish President Recep Tayyip Erdogan lost his confidence in the Governor of the Central Bank of Turkey, Shehab Kavcioglu, due to his delay in lowering the interest rate.
Turkey’s central bank cut the interest rate abruptly last month by 100 points, down to 18% from 19%. This damaged the morale of Turkish lira investors, who returned to losing confidence in the independence of the Turkish Central Bank’s decision.
And if these rumors about the Turkish president’s loss of confidence in the central bank governor prove to be true, the Turkish lira will face more danger.
Inflation is now above the interest rate, but the economy is showing moderate signs of improvement. The most important levels of the Turkish lira
The lira is now standing on the cusp of 9 Turkish lira per US dollar. If the US dollar index continues to strengthen, the lira will be threatened over the next week with further declines.
The article, will the Turkish lira continue to decline, was written in Al-Borsa newspaper.