Turkey's Unravelling Economy

The Turkish lira has been in meltdown as President Erdogan rejected warnings on the dangers of his recent interest rate cuts. He vowed that there was “no going back”.

The currency, which has lost about 40 per cent of its value against the dollar since the central bank started lowering borrowing costs in September, fell to a new record low of TL18.36 against the dollar on Monday

Trading on Turkey’s main stock exchange was halted for the second consecutive session following a 5 per cent decline for the flagship index.

The Turkish president, said in a televised speech on Sunday night “Don’t expect anything else from me, as a Muslim, I will continue to do whatever the religious decrees require.”