Skip to main content

Turkish lira hits new record low as central bank holds rates

The currency tumbled after policy-makers disappointed expectations they would raise the benchmark rate, while geopolitics and the possibility of new coronavirus measures hitting the economy also weigh on the embattled lira.
People walk past a screen near a currency exchange agency near Grand bazaar, in Istanbul, on September 24, 2020. - Turkey's central bank on September 24, 2020 raised its main interest for the first time since September 2018, boosting the rate by two percentage points to help the lira recover from historic lows. (Photo by Ozan KOSE / AFP) (Photo by OZAN KOSE/AFP via Getty Images)

ISTANBUL — The Turkish lira sunk to a record low on Thursday after the central bank unexpectedly kept its benchmark interest rate on hold, heaping pressure on the beleaguered currency as investors already worried about political risks continue to exit its markets.

The lira fell as much as 2.1% against the dollar to 7.98 — another all-time low for a currency that has lost about a quarter of its value this year — after the bank’s monetary policy committee announced its decision. It steadied to 7.93 in later trading.

Access the Middle East news and analysis you can trust

Join our community of Middle East readers to experience all of Al-Monitor, including 24/7 news, analyses, memos, reports and newsletters.

Subscribe

Only $100 per year.