The Turkish lira hit an all-time low of 18.7 against the dollar

The Turkish lira fell to a new all-time low of 18.7 against the dollar on Friday, continuing its losses this year, which exceeded 29%, despite Ankara’s efforts to implement new policies to tighten control over the local currency exchange rate.

The lira fell 44% in 2021, mainly due to a series of sharp interest cuts, despite the high inflation.

The currency has become less affected by monetary policy decisions due to a program to protect lira deposits from currency depreciation and indirect foreign exchange sales to the market by the government.

The lira has been relatively stable since August, despite interest rates being cut again by 500 basis points to 9% this year, despite inflation approaching 85%.