The Turkish lira touched a new historic low at 29 per dollar on Monday, marking a 35% decline so far this year.
This comes in the aftermath of economic policy changes by President Erdogan’s government, which, with the approval of the Turkish president, has taken actions to loosen the currency’s influence as part of a shift towards more orthodox policies.
Erdogan, who had been advocating for highly unorthodox economic policies for several years, made significant changes in June by appointing a new cabinet and a new governor to the Central Bank.
Since then, the Central Bank has raised interest rates to 40% from 8.5%.