Turkish lira down 7% in biggest selloff since 2021 crisis

Turkey’s lira plunged 7% to a record low on Wednesday in its biggest daily selloff since a historic 2021 crash, as the newly-elected government appeared to loosen stabilising measures in its pivot to more orthodox policies.

The lira has come under pressure since President Tayyip Erdogan was re-elected on May 28. It stood at 22.98 against the dollar at 0735 GMT.

Earlier it touched a record low of 23.16, bringing its losses this year to more than 19%.

Erdogan announced his new cabinet at the weekend and named Mehmet Simsek, a former deputy prime minister who is well regarded by foreign investors, as finance minister. Simsek later said economic policy needed to return to “rational” ground.

Markets are also waiting for the appointment of a new central bank governor to replace Sahap Kavcioglu, who spearheaded rate cuts under Erdogan’s unorthodox policies.

“We are seeing policy normalisation play out,” said Tim Ash at BlueBay Asset Management.

This report’s information was first seen on REUTERS; to read more, click this link.