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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.

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

Photographer: Erhan Demirtas/Bloomberg
Updated on

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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.