The Turkish lira depreciated 8% against the dollar to a record low of 12.49.
According to the British news agency Reuters, due to concerns about Turkey's unconventional monetary policy, the lira fell to a record low against the dollar on Tuesday, while the Russian ruble strengthened but fears of a war with Ukraine. Kept it at a four-month low.Turkish President Tayyip Erdogan, who has long sought to accelerate economic growth, on Monday vowed to win his "economic war of independence" by defending low monetary policy rates.
The policy rate in Turkey is now 15% while inflation is 20%.
Speculation that Erdogan may soon remove Finance and Economy Minister Lotfi Elvan is raising concerns.
The lira is now more than 37% lower against the dollar, significantly behind other emerging market players.
Jason Towey, a senior EM economist at Capital Economics, said: "Before we can change the approach, we need to start looking at the tensions in the banking sector. So far, the banks have been very competitive.
"As long as this is the case, I doubt the central bank will raise rates."
"The lira could fall below 13," he said.Concerns have been raised by US President Joe Biden's re-election of Federal Reserve Chairman Jerome Powell, and the central bank has said it may tighten its policy more quickly than expected. Is, which can withdraw money from EM assets.
"In developing economies, central banks will be helpful in lending to emerging markets but could be a source of concern for equities," Black Rock said Monday.
