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What the lira collapse means for Turkey’s economy
Analysts warn of increased dollarisation, hyperinflation and the rising cost of debt
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https://www.ft.com/content/7c3ec643-...f-66e1385af2ce
Turkish president Recep Tayyip Erdogan’s defence of recent interest rate cuts and declaration of an “economic war of independence†has sent the lira plunging and left analysts wondering how much further he is willing to let the currency fall.
Erdogan, who has sacked three central bank governors since mid-2019 and is a life-long opponent of high interest, has insisted that he will continue on the path of low rates in a quest to stimulate growth and investment. Forecasters including the IMF expect gross domestic product growth of 9 per cent this year — one of the fastest rates in the world.
https://www.ft.com/content/7c3ec643-...f-66e1385af2ce
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