ISTANBUL — The Turkish lira continues its downward slide against major currencies, hitting record lows of 7.63 per US dollar and nearly 9 per euro as of Monday afternoon. The losses come ahead of a highly anticipated Central Bank meeting Thursday in which few analysts expect policy-makers to reverse an easing cycle that’s kept borrowing costs below inflation.
The lira has lost about 21% of its value against the dollar this year as the COVID-19 pandemic continues to impact economies around the world. To date, the Central Bank has resisted pressure to raise key interest rates, instead utilizing “backdoor” tightening policies that have raised weighted-average borrowing costs for funding.