Turkish lira hits record low

The Turkish Lira reached a record low on Thursday, after the sacking of three central bank monetary policy committee members by president Tayyip Erdogan.

Those dismissed were deputy governors Semih Tumen and Ugur Namik Kucuk, along with another MPC member, Abdullah Yavas. President Erdogan appointed Taha Cakmak as a deputy central bank governor and Yusuf Tuna as an MPC member.

The lira weakened to a record low of 9.1900 against the dollar after the announcement, a loss of 1% on the day. It later pared some of the day’s losses, to stand at 9.1325.

It has weakened about 19% so far this year, driven by concerns about monetary policy.

In September, the central bank unexpectedly cut its key rate to 18% from 19% despite annual inflation of nearly 20%, sparking a new selloff in the lira, which was also hit by the dollar strengthening against other currencies.