The Turkish lira hits a record low against the dollar

The lira has fallen by 35 percent since the beginning of the year until now, after the authorities loosened their grip on exchange rates as part of a greater shift towards traditional policies.

After adopting unconventional policies for years, Turkish President Recep Tayyip Erdogan modified his approach in June and appointed a new central bank governor, who has since raised interest rates from 8.5 percent to 40 percent.

Official data previously showed that the annual consumer price inflation rate in Turkey rose to 61.98 percent in November, driven by a rise in food and transportation prices, which was slightly lower than expectations. According to data from the Turkish Statistical Institute, inflation reached 3.28 percent on a monthly basis.

Inflation rose after the lira crisis at the end of 2021 and touched its highest levels in 24 years at 85.51 percent in October of last year, and this year the lira lost about 35 percent of its value.