ISTANBUL — Following a five-week rally that saw Turkey’s lira rise 7% against the dollar since the start of the year, the currency slid Monday, losing about 1% amid a political spat in which Turkish President Recep Tayyip Erdogan defended the record of his son-in-law and former Finance Minister Berat Albayrak.
The shakeup comes after Turkey’s main opposition Republican People’s Party (CHP) ran a social media campaign last week criticizing Albayrak for overseeing a steep drop in Turkish foreign exchange reserves over his two-year tenure, which ended abruptly with his resignation in November. The CHP claimed Albayrak, who has remained largely out of public sight since stepping down, spent nearly $130 billion in reserves to support the lira against an economic downturn sparked by the COVID-19 pandemic.
