Turkish Lira hit record low against foreign currencies

The Turkish Lira hit a record low against foreign currencies on Thursday.

The dollar/TL rate rose above 11 with a daily decrease of more than 4 percent after the Central Bank of the Turkey decision to reduce the interest rate from 16 percent to 15 percent.

Sterling/TL rate exceeded 15 and Euro/TL rate exceeded 12.60.

Contrary to market expectations, the Central Bank of the Republic of Turkey (CBRT) cut interest rates by a total of 400 basis points in September, October and November accelerated the depreciation of TL.

Despite inflation being close to 20 percent, the CBRT's interest rate cut to 15 percent increases the pressure on the TL.