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Lira Chaos Fuels Predictions for More Financial Stress in Turkey

  • Lira sank to all-time lows after Turkey’s interest-rate cut
  • Business leaders say FX volatility is hurting the economy

A credit crunch. More expensive exports. Debt restructurings.

Those are some of the economic shocks that analysts say potentially face Turkey if the lira keeps spiraling lower. The currency plunged to historic lows on Thursday after the central bank cut interest rates, despite inflation at 20%.