Lira Chart Comforting Erdogan Team Seen Pressuring Central Bank
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A lira chart showcased by the Turkish president’s chief adviser to illustrate why the nation shouldn’t fret over its tumbling currency might also signal central bank action to staunch the rout.
The lira, which has fallen to records past 2.8 against the dollar in the past three days as talks to form a coalition government collapsed, will only become “competitive” at 3 per dollar, Cemil Ertem said in a tweet Friday. To help his point, he posted a graph of the lira’s relative strength after inflation, or the real effective exchange rate. By that measure, it’s weaker now than levels that prompted emergency interest-rate increases last year.