The Turkish lira falls after the central bank's decision to maintain interest rates :: Investor.bg

<img src = "https://www.investor.bg/images/photos/0265/0000265240-article3.jpg" alt = "The Turkish central bank left its key rate unchanged, despite market expectations for The Turkish lira lost 3.35% of its value to around 4.8983 per dollar because of concerns about the independence of the bank by tightening the control of President Recep Tayyip Erdogan on the l 39; Turkish economy, according to the Wall Street Journal

.In the field of monetary policy, after Erdogan was re-elected president and obtained extensive executive powers, the central bank left the rate of $ 1.5 million. basic interest unchanged at 17.75%

The decision could raise concerns that the bank failed to fight inflation, which reached 15.4% last month.It is its strongest growth on an annual basis in 15 years.These fears prompted the pound to lose about a quarter of its v dollar against the dollar since the beginning of the year. Investors fear that the president will use his strengthened control over the central bank to maintain an excessively loose monetary policy.

During his election campaign, Erdogan said that he would encourage lower interest rates to support the investment and demand of

Investors ask questions about the business. independence of the Turkish Central Bank after Erdogan obtained the right to appoint the governors of the institution, and appointed his brother-in-law Berat Albeyrak as minister of finance . On his return from a meeting of G20 finance ministers in Argentina this weekend, he told Turkish journalists that the government would not fight the markets

"One of our main goals is an effective central bank in all the processes, "he said.

The increase in monetary value this year has hit some vulnerable emerging markets. Analysts say Turkey is particularly concerned about years of credit-driven economic growth, which has led banks and companies across the country to accumulate debt for around $ 230 billion. Many Turkish companies, which receive their Turkish lira, are unable to cope with their dollar denominated loans denominated in euros.