The central bank’s abrupt move on Thursday to ease monetary policy as Erdogan has sought, despite a run-up in inflation, sparked an almost 3% drop in the currency this week. Foreign investors fleeing the currency drove the fall, but local bargain hunting mitigated the effect, traders said. “The central bank’s decision put the lira under serious selling pressure. Locals also bought lira in March when it plunged after Erdogan fired a hawkish central bank chief and installed Sahap Kavcioglu as governor. Reuters GraphicsForeign investors hold just over five percent of Turkish government bonds, down from more than 20 percent five years ago.

Source: Egypt Independent September 24, 2021 21:45 UTC