People walk past a billboard displaying exchange rates in Istanbul, Türkiye, on June 23, 2023. Turkish currency on Friday sank to fresh lows against the U.S. dollar a day after the central bank hiked its key interest rate well below market expectations. The lira hit 25.0 against the greenback at around 11 a.m. local time (0800 GMT). The currency's depreciation has exceeded 20 percent since the beginning of the year. (Photo by Omer Kuscu/Xinhua)
ISTANBUL, June 23 (Xinhua) -- Turkish currency on Friday sank to fresh lows against the U.S. dollar a day after the central bank hiked its key interest rate well below market expectations.
The lira hit 25.0 against the greenback at around 11 a.m. local time (0800 GMT). The currency's depreciation has exceeded 20 percent since the beginning of the year.
On Thursday, Türkiye's central bank, led by its new governor Hafize Gaye Erkan, raised the interest rate from 8.5 percent to 15 percent, the first such hike in over two years.
Arda Cosar, treasury director at Ahlatci Investment Company, told Hurriyet Daily News that the rate hike was below expectations, leading to the lira's depreciation. He said the anticipation rate was 15 to 20 percent.
President Recep Tayyip Erdogan has defended lower rates as a means to stimulate growth but said he accepted the steps taken by his new team to address the economic crisis in the country. ■
Tourists are seen at an exchange office in Istanbul, Türkiye, on June 23, 2023. Turkish currency on Friday sank to fresh lows against the U.S. dollar a day after the central bank hiked its key interest rate well below market expectations. The lira hit 25.0 against the greenback at around 11 a.m. local time (0800 GMT). The currency's depreciation has exceeded 20 percent since the beginning of the year. (Photo by Omer Kuscu/Xinhua)
People change money at an exchange office in Istanbul, Türkiye, on June 23, 2023. Turkish currency on Friday sank to fresh lows against the U.S. dollar a day after the central bank hiked its key interest rate well below market expectations. The lira hit 25.0 against the greenback at around 11 a.m. local time (0800 GMT). The currency's depreciation has exceeded 20 percent since the beginning of the year. (Photo by Omer Kuscu/Xinhua)
