Economics

Turkey’s Defenseless Lira Slides to Weakest Since 2021 Crisis

  • Geopolitics, low rates, inflation adding to pressure on lira
  • Central bank has limited tools, resources to stabilize market

Diners at a terrace outside a port-side cafe in Istanbul, Turkey.

Photographer: Erhan Demirtas/Bloomberg
Lock
This article is for subscribers only.

Sign up for our Middle East newsletter and follow us @middleeast for news on the region.

The Turkish lira plunged to the weakest level since a rout late last year, as a steep drawdown in the central bank’s reserves and its unorthodox monetary policy left the currency increasingly exposed amid a standoff with the country’s NATO allies.