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The Turkish lira gradually declined ahead of the central bank election

The Turkish lira has also plummeted as investors plan to push the country’s central bank to cut interest rates on Thursday despite a sharp rise in inflation.

The currency, which has lost more than 40 percent of its value compared to the dollar since the bank began lowering prices under President Recep Tayyip Erdogan’s decree in September, hit TL15.2 to the US dollar at the beginning of a London trade.

Erdogan, a staunch opponent of high interest rates, has forced the central bank to cut prices repeatedly even though prices have risen by 21 percent and Turkey lira has gone to the freefall. He went on to say that lower prices will bring about price stability by boosting trade, finance and jobs.

The central bank predicted Thursday that reducing interest rates and 1 percent to 14 percent, according to a Reuters survey. The one-week repo rate was up 19 per cent until September, when governor Sahap Kavcıoglu began cutting sharply. In early September, the lira sold for about $ 8.

Economists say that falling prices during the Great Depression are unpredictable and that the unpredictable economic downturn that could lead to inflation, even destroying the lives of people already suffering from poverty.

“Had it not been for the pain and suffering of 84 million people, this would have been a dramatic economic test,” said Refet Gurkaynak, a professor of economics at Bilkent University in Ankara.

“It shows that economists have a better understanding of the basics of finance. We knew this was the result – and it will.”

Erdogan, whose ruling party was disbanded in the run-up to the election campaign, is expected to announce a major pay rise on Thursday in a bid to address the country’s financial crisis. Pro-government journalists also said the increase is expected to be around 35 to 40 percent.

The Turkish president, who earlier this month appointed a new finance minister after resigning his former chief of staff, announced another financial crisis in early Thursday.

He fired Sakir Ercan Gul and Mehmet Hamdi Yildirim, deputy finance minister, according to an order published in the official gazette.

He was replaced by Yunus Elitas, the prime minister, and Mahmut Gurcan. Gurcan is a former ruling party official who, as a family member Nureddin Nabati, the new finance minister, also owns a textile business.


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