Turkish lira hits a record low after US reviews duty-free access
The currency has lost 27% of its value this year; the sell-off prompts the central bank to loosen the upper limit of banks’ reserve requirements
Istanbul — The Turkish lira plunged to record lows on Monday after the Trump administration said it was reviewing Turkey’s duty-free access to the US market, a move that could affect $1.7bn of Turkish exports. The US Trade Representative’s (USTR) review, announced on Friday, came after Ankara imposed retaliatory tariffs on US goods in response to American tariffs on steel and aluminium. The currency has lost 27% of its value this year, battered primarily by concerns about President Recep Tayyip Erdogan’s drive for greater control over monetary policy. On Monday, it fell as much as 3.8% to a record low of 5.29 against the dollar, before recovering some ground to trade at 5.2750 at 16.53 GMT. The sell-off prompted the central bank to step in and loosen the upper limit of banks’ reserve requirements. However, that did little to prop up the lira, which also hit a record low versus the euro. "The best bet now is to expect further weakness in the lira — Turkey really doesn’t need this," s...
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