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Turkish lira tumbles ahead of key decision on rate cuts, wages

As Turkey’s battered lira pushes to new lows against the dollar, all eyes turn to Thursday’s central bank meeting and critical talks on the minimum wage.
A picture taken on Dec. 7, 2021, in Istanbul shows US dollars banknotes and Turkish lira banknotes.

Turks woke Monday to watch their currency plunge to 14 against the dollar early in the morning, then go past it to 14.62 until noon. The fragile Turkish lira already lost more than half of its value against the dollar since the beginning of the year, 28.3% of which is in the last month. The rating agency S&P downgraded its outlook on the country to negative at the end of last week.

The central bank sold foreign exchange in the currency market Monday noon, citing “unhealthy” price formation in the market. It is the bank’s fourth intervention within a month.

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