Turkish Lira Falls Again; Hits New Low Against US Dollar

The Turkish lira reached its lowest point against the US dollar on Wednesday, marking another record in its decline. This latest drop in Turkey's national currency comes as Recep Tayyip Erdoğan, who has won the presidential election, prepares to form a new government and set economic policy direction. According to Reuters, four senior Turkish officials stated that Mehmet Şimşek, the former head of economic affairs known in financial markets, is almost certain to hold a significant position in the government, either as Minister of Finance or as Vice President. Appointing Mehmet Şimşek to a key role could indicate a departure from Erdoğan's years-long unconventional economic policies. The foundation of his unconventional economic policy has been lowering interest rates despite high inflation. Erdoğan's insistence on his economic policy has led to the continuous decline of the lira in recent months. According to Reuters, on the third consecutive day of the Turkish national currency's depreciation, one US dollar was traded at around 20.75 lira at certain times of the day. The Turkish lira has lost nearly 10 percent of its value since the beginning of this year. The third decade of Erdoğan's rule has been marked by the lira's depreciation; a report from Voice of America from Ankara states that the renewed fall in Turkey's national currency has set another record. Erdoğan's adherence to 'Islamic demands' has seen inflation in Turkey rise to 80 percent, with official estimates suggesting inflation could reach 65 percent by the end of the year. The downward trend of the lira continues as Turkish banks limit mortgage loans.