Turkish Lira Declines to Record Lows Following Start of Erdogan’s New Presidential Term

Turkish President Recep Tayyip Erdogan won reelection last month despite a battered economy and a cost-of-living crisis that experts say are exacerbated by his unconventional economic policies.

The long-time leader appointed an internationally respected former banker as finance and treasury minister and on Friday named a former co-CEO of a U.S.-based bank as head of the central bank.

But lingering uncertainty over Erdogan’s economic direction and an apparent move to loosen government controls of foreign currency exchanges have led Turkey’s currency to plunge to record lows against the U.S. dollar this week.

The Turkish lira has now weakened by around 20% against the dollar since the start of the year. It has raised fears of even higher prices for people already struggling to afford basics like housing and food amid high inflation.

“I am anxious. I am unhappy. Soon my income won’t pay the rent,” said Sureyya Usta, a 63-year-old who lives in Ankara.