Turkish lira nears 14 to US dollar as Erdoğan speaks again

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The Turkish lira's exchange rate against the US dollar further declined last night (November 30) after President Recep Tayyip Erdoğan's live interview with the state broadcaster TRT.

Describing what he called "a new economic model," Erdoğan said, "We are refusing the policy of drawing hot money flow with high interest rates. We'll support production and exports with lower interest rates."

"The interest rate is the cause, the inflation rate is the result," he said, reiterating his unconventional theory. "We are currently lowering the interest rate and hopefully we will see the decrease of the inflation rate as well."

Turkey's Central Bank lowered the policy rate for three months in a row and further rate cuts are expected for December.

When the interview on TRT began at 10 p.m., the US dollar's exchange rate was around 13.30 against the lira. During the program, it rose to as high as 13.96.

Erdoğan will speak today at his Justice and Development Party's (AKP) parliamentary group meeting.

The lira has lost over 45 percent in value since the start of the year and 29 percent in value in November alone. (TP/VK)