The Turkish lira has reached a new low. The value of the currency has fallen further after Turkish President Erdogan announced that he continues to lower interest rates. In doing so, he goes against the general advice to increase interest rates in order to prevent the further fall of the lira.
The value of the lira against the dollar plummeted more than 6 percent after the announcement. Over the past five days, the value of the coin has been falling continuously. That is not a new development: in the past three months, the lira has lost half of its value.
Economists from home and abroad are increasingly advising the Turkish president to increase interest rates, but Erdogan does not want to know about that. Meanwhile, Turkish citizens can buy less for their money every day. While the money in their wallets is becoming less valuable every day, prices in the supermarket are rising.
Look here for a report that correspondent Mitra Nazar made earlier about the increasing money problems of Turkish citizens:
There is confusion as to why President Erdogan continues to lower interest rates. In his announcements about this, he sometimes refers to Islam. On Sunday, he said on television that he will “continue to do what is required as a Muslim”.
Making money with money, and thus charging interest, is prohibited in Islamic teachings.