STORY: Turkish lira plunges to new lows following rate hike
DATELINE: June 24, 2023
LENGTH: 00:01:07
LOCATION: ISTANBUL, Türkiye
CATEGORY: ECONOMY

SHOTLIST:
1. various of Istanbul
2. various of exchange offices in Istanbul
3. various of clerks counting U.S. dollars in Istanbul
4. various of Türkiye's central bank
5. various of Hafize Gaye Erkan, governor of Türkiye's central bank
6. various of a press conference of Turkish President Recep Tayyip Erdogan in Ankara, Türkiye (file)

STORYLINE:

Turkish currency on Friday sank to fresh lows against the U.S. dollar a day after the central bank hiked its key interest rate well below market expectations.

The lira hit 25.0 against the greenback at around 11 a.m. local time (0800 GMT). The currency's depreciation has exceeded 20 percent since the beginning of the year.

On Thursday, Türkiye's central bank, led by its new governor Hafize Gaye Erkan, raised the interest rate from 8.5 percent to 15 percent, the first such hike in over two years.

Arda Cosar, treasury director at Ahlatci Investment Company, told Hurriyet Daily News that the rate hike was below expectations, leading to the lira's depreciation. He said the anticipation rate was 15 to 20 percent.

President Recep Tayyip Erdogan has defended lower rates as a means to stimulate growth but said he accepted the steps taken by his new team to address the economic crisis in the country.

Xinhua News Agency correspondents reporting from Istanbul, Türkiye.
(XHTV)