The Turkish lira continues its record drop against the US dollar and the euro on Friday, following the Central Bank's decision to raise its key interest rate for the first time since March 2021.
The lira weakened to an all-time low of 25.11 lira to the dollar, according to trade data. The euro is trading at 27.46.
Earlier, Turkey's Central Bank announced it would raise its key rate from 8.5 to 15%. This was done as part of measures to combat the economic crisis and tighten monetary policy in the country. The matter concerns the rate at weekly repo auctions - a short-term loan of funds against securities. The Board of Directors of the Central Bank also decided "to begin the process of tightening monetary policy in order to achieve deflation as soon as possible, consolidate inflation expectations and control price volatility."
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Based on materials from TASS