Ankara, Nov 21 (EFE). - The Turkish lira has fallen to its historical low today, changing to 4.64 units per euro and to 3.95 per US dollar, accumulating a decline around 14% in the last ten weeks.
The weakening of the lira and the increase in inflation -11.9% year-on-year in October, the highest level in nine years- are putting pressure on the Turkish Central Bank to raise interest rates, although the country's president, Recep Tayyip Erdogan, has criticized that possibility.
Erdogan said last week that the issuing bank He was "wrong" in trying to fight inflation with high interest rates and advocated, on the contrary, for lowering them.
"They say that the Central Bank should be independent and they tell us not to. we must intervene. economic are driving the loss of value of the Turkish currency.
In addition, the markets are pending the trial to be held at the end of November in New York (USA) to Reza Zarrab, a businessman of Turkish and Iranian nationality who allegedly helped Iran evade Washington's economic sanctions and bribed bankers and senior officials in Turkey.
Some of those operations were allegedly done thanks to the Turkish state bank HalkBank and some analysts fear that the revelations of that trial could affect the Turkish political class and economy.
The Turkish economic magazine Paraanaliz has pointed out that the Zarrab case generates distrust in financial investors and only in the second week of November withdrew 1,000 million dollars from the Turkish economy.