The Turkish lira has continued to plummet so far in 2018, sinking to fresh all-time lows as a worrisome cocktail of economic developments diminished demand for Turkish assets. On Monday morning it fell to an exchange rate lower than 4.55 liras per US dollar, while inflation reached a double-digit figure.
The Turkish currency has dropped by 16.5% since the start of 2018.
Market pundits expressed concerns over the statements made by Turkish President Recep Tayyip Erdogan in London about the prospect of the government tightening his grip on the monetary policy. Investors worry that the country’s central bank is either unwilling to raise interest rates or has lost its independence.