clearn.png
Monday October 3rd, 2022 7:21AM

Turkish lira hits record low before central bank meeting

By The Associated Press
Related Articles
  Contact Editor

ISTANBUL (AP) — Turkey’s currency fell to a record low against the dollar before a central bank meeting on interest rates Thursday, expanding the pain for people who have seen their purchasing power erode during a series of economic shocks in the country.

The lira traded at 18.38 against the dollar, weakening further than the previous record low of 18.36 in December, before recovering to about 18.36.

Turkey has been following President Recep Tayyip Erdogan’s unorthodox belief that high interest rates cause high inflation, cutting borrowing costs despite consumer prices rising by an eye-watering 80.21% in August from a year earlier.

Central banks around the world are moving the opposite way in line with traditional economic thinking, aggressively raising rates to target soaring inflation.

The U.S. Federal Reserve hiked rates by a large three-quarters of a point for the third consecutive time Wednesday, followed Thursday by the Swiss National Bank’s biggest hike ever to its key interest rate. The Bank of England is weighing how aggressively Thursday to act as banks from Europe to Canada move quickly to rein in rising prices.

The Turkish central bank last month lowered its benchmark rate by 1 percentage point, to 13%. Official statistics released this month showed annual inflation was the worst among the Group of 20 major economies, but independent experts say inflation is actually much higher.

Critics also say the independence of the central bank and the official statistical institute have been undermined under Turkey's presidency.

Last year, the currency kept hitting record lows as the central bank lowered interest rates from 19%. When it finally hit 18.36 against the dollar, Erdogan announced extraordinary measures that he claimed would safeguard the lira.

The government encouraged people to swap their dollars for the lira and place them in a deposit account that would give the interest rate plus any lira depreciation against the dollar. Though the lira rebounded after that announcement to a high of 11.09, it steadily declined this year.

  • Associated Categories: Associated Press (AP), AP World News, AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services
© Copyright 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
White House hosts local officials, touts impact of policies
The White House is reaching out to local governments
5:34AM ( 13 minutes ago )
Bank of England pressed to follow US Fed with big rate hike
Britain’s central bank is under pressure to make another big interest rate hike Thursday
5:25AM ( 22 minutes ago )
Khmer Rouge tribunal ends work after 16 years, 3 judgments
The international court that judged the Khmer Rouge for its brutal 1970s rule ended its work by rejecting the last surviving leader's appeal
5:18AM ( 29 minutes ago )
Associated Press (AP)
6.8 magnitude earthquake shakes Mexico, no damage known yet
An earthquake with a preliminary magnitude of 6.8 has caused buildings to sway in Mexico’s capital
3:23AM ( 2 hours ago )
Secret vaccinations help Zimbabwe mothers protect children
Church members in Zimbabwe are getting their children vaccinated against measles in secret amid a deadly outbreak
3:11AM ( 2 hours ago )
In Ukraine's retaken battlefields, soldiers recover bodies
Only now are Ukrainian soldiers able to retrieve the bodies of dead soldiers from a region near the Russian border that was the scene of fierce fighting for months over the summer
3:02AM ( 2 hours ago )
AP World News
Ukraine’s Mariupol defenders, Putin ally in prisoner swap
Ukraine has completed a high-profile prisoner swap with Russia, the culmination of months of efforts to free many of the Ukrainian fighters who defended a steel plant in the port of Mariupol during a months-long Russian siege
3:48AM ( 2 hours ago )
Longtime Royals executive Dayton Moore departs one last time
Dayton Moore was fired from his role atop the baseball operations department for the Kansas City Royals on Wednesday
3:10AM ( 2 hours ago )
UK businesses laud energy relief, but costs still a struggle
Pubs, restaurants, breweries, retailers and other businesses across the United Kingdom are being pushed to the brink by skyrocketing energy bills
2:24AM ( 3 hours ago )
AP Business
Biden: Russia's Ukraine abuses 'make your blood run cold'
President Joe Biden has declared that Russia has “shamelessly violated the core tenets” of the United Nations charter with its “brutal, needless war” in Ukraine
10:09PM ( 7 hours ago )
Leaders of S. Korea, Japan agree to strive to improve ties
The governments of South Korea and Japan say their leaders have agreed to accelerate efforts to mend ties frayed over Japan’s colonial rule of the Korean Peninsula
9:35PM ( 8 hours ago )
North Korea denies sending arms to Russia amid Ukraine war
North Korea says it hasn’t exported any weapons supplies to Russia during the war in Ukraine, and has no plans to do so in the future
7:35PM ( 10 hours ago )
AP Business - Economy
Steel plant defenders, Putin ally exchanged in prisoner swap
Ukraine has completed a high-profile prisoner swap that culminated months of efforts to free many of the Ukrainian fighters who defended a steel plant in the port of Mariupol during a months-long Russian siege
8:55PM ( 8 hours ago )
Russian separatists release 10, including 2 US veterans
Relatives say two U.S. military veterans who were captured while fighting alongside Ukrainian forces are among 10 people released by Russian-backed separatists in a prisoner exchange
6:10PM ( 11 hours ago )
How steep Fed rate hikes affect your finances
Mortgage rates have jumped, home sales have slumped and credit cards and auto loans have gotten pricier
2:08PM ( 15 hours ago )
AP Business - Financial Markets
With Ukraine nuke plant in peril, UN tries to broker safety
The head of the U.N. nuclear watchdog agency says he'll meet with Ukraine’s and Russia’s foreign ministers in a bid to establish a safety and security zone around a nuclear plant in southeastern Ukraine that is Europe’s largest
9:35PM ( 8 hours ago )
Gates Foundation prods UN, honors inspiration as Goalkeepers
Bill Gates and Melinda French Gates combined characteristic optimism with sobering questions about persistent gender inequality and hunger at an event the Gateses’ foundation convened on the sidelines of the U.N. General Assembly
7:44PM ( 10 hours ago )
US has sent $8.28 billion in pandemic funds to local lenders
On the same day the Federal Reserve gave a sobering report on the U.S. economy’s trajectory, administration officials highlighted how they have kept some of the nation’s smallest businesses afloat through the pandemic
5:23PM ( 12 hours ago )
AP Business - Industries
Iran targeted by apparent cyberattack amid protests
The website of Iran’s Central Bank was briefly taken down as the Anonymous hacking group claimed to have targeted websites of several state agencies
8:34AM ( 21 hours ago )
EXPLAINER: How steep Fed rate hikes affect your finances
Mortgage rates have jumped, home sales have slumped and credit cards and auto loans have gotten pricier
6:35AM ( 23 hours ago )
High inflation in sight, Fed to signal more rate hikes ahead
The U.S. Federal Reserve is expected to raise its key short-term rate by a substantial three-quarters of a point for the third consecutive time
6:04AM ( 23 hours ago )
AP Business - Financial Services
White House hosts local officials, touts impact of policies
The White House is reaching out to local governments
5:34AM ( 14 minutes ago )
Global stocks fall after Fed steps up inflation fight
Global stock markets are lower after the Federal Reserve delivered another big interest rate hike to cool galloping inflation and raised its outlook for more increases
5:27AM ( 20 minutes ago )
Bank of England pressed to follow US Fed with big rate hike
Britain’s central bank is under pressure to make another big interest rate hike Thursday
5:25AM ( 23 minutes ago )
Khmer Rouge tribunal ends work after 16 years, 3 judgments
The international court that judged the Khmer Rouge for its brutal 1970s rule ended its work by rejecting the last surviving leader's appeal
5:18AM ( 30 minutes ago )
Bank of England poised for another big interest rate hike
Britain’s central bank is under pressure make another big interest rate hike Thursday
4:42AM ( 1 hour ago )