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The Turkish lira continues to decline after Erdogan escalated the Turkish ambassador

The Turkish lira continues to decline after Erdogan escalated the Turkish ambassador

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Insiders expect government banks to cut borrowing costs significantly on Monday.


(Photo: Reuters)

Istanbul The Turkish lira fell to a new record low of 9.74 lira in early Asian trade against the dollar on Sunday evening – after $9,595 late Friday. Over the weekend, President Recep Tayyip Erdogan escalated the conflict with Western countries over human rights activist Osman Kavala and declared ambassadors of Germany, the United States, France and seven other Western countries persona non grata.

Whether his words would also be followed by the expulsion of ambassadors remained open at first. In the past, Erdogan has repeatedly failed to carry out threats against foreign partners. Opposition politicians in Turkey said at the weekend that the president only wanted to use the escalation to distract attention from Turkey’s economic problems.

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