Turkey’s currency plunges to new low

ANKARA: “IF THEY HAVE THEIR DOLLAR, WE HAVE THE PEOPLE, WE HAVE ALLAH,” ERDOGAN SAID, PORTRAYING THE LIRA’S FALL AS A “CAMPAIGN” TO HARM TURKEY

The Turkish currency plunged on Friday, raising questions about the country’s financial stability, as investors worried about the president’s unorthodox economic policies and a dispute with the United States that has led to sanctions.

The lira hit a record low of 6.24 per dollar on Friday, before recovering to 5.92 — still down a whopping 7% on the day.

The currency has fallen 66% since the start of the year, pushing up the cost of goods for Turkish people and shaking international investors’ confidence in the country.

One of the triggers of the turmoil has been a standoff with the US over a detained American pastor that Turkey, a Nato ally, has put on trial for espionage and terror-related charges linked to a failed coup attempt in the country two years ago.

Washington has demanded the pastor’s release and imposed financial sanctions on two Turkish ministers and warned of additional measures. High level meetings in Washington between US and Turkish officials ended this week without an apparent resolution. Meanwhile, investors are worried about the economic policies of President Recep Tayyip Erdogan, who won a new term in office in June with sweeping new powers. AP