Erdogan warns of campaign against Turkey as lira plummets

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Erdogan warns of campaign against Turkey as lira plummets

8:29 CAT | 10 Aug 2018

Turkey became the fastest-growing country in the world last year, with an economic growth rate of 7.4 percent, according to the government [Presidential Press Service via AP]

Turkish President Recep Tayyip Erdogan has lashed out against a shadowy international “interest rate lobby” which he suggested was “campaigning” to harm Turkey’s economy, after the lira fell more than 14 percent overnight.

The Turkish currency stood at 5.94 against the dollar at 10:00 GMT, down some seven percent, after falling as much as 14.6 percent overnight – its biggest one-day drop since early 2001.

Shares of European lenders also dropped, which according to the Reuters news agency was due to concerns about their Turkey exposure.

However, a defiant Erdogan brushed aside concerns, telling a roaring crowd of Turks in the Black Sea city of Rize not to worry.

“There are several campaigns being carried out [against Turkey]. Do not heed them,” Erdogan said.

“If they have their dollars, we have our people, our God.

“Know this: We are better than yesterday, we will be even better tomorrow. Have no doubts about it,” he added.

Finance Minister Berat Albayrak is due to announce the government’s latest plan for the economy at a press conference at 11:30 GMT.

Erdogan, a self-described “enemy of interest rates”, wants cheap credit from banks to fuel growth, but investors fear the economy is overheating and could be set for a hard landing.

Despite the turmoil, Turkey became the fastest-growing country in the world last year, with an economic growth rate of 7.4 percent, according to the government.

Source: Al Jazeera