Why Turkey's currency is in freefall following unconventional interest rate policy decisions

President Erdogan's recent decision to slash interest rates has triggered a severe currency crisis in Turkey. This video examines the economic fallout, including the dramatic decline of the lira and the resulting instability in the nation's financial markets.

Since September, the Turkish central bank has aggressively lowered borrowing costs, a move that President Erdogan has defended despite widespread warnings. This policy shift has caused the Turkish lira to lose approximately 40 per cent of its value relative to the dollar. By Monday, the currency hit a record low of 18.36 lira per dollar.

The economic turbulence has spilled over into the stock market, where trading on the main exchange was suspended for two consecutive sessions after the flagship index dropped by 5 per cent. President Erdogan has framed his economic stance through a religious lens, stating in a televised address that he will continue to act in accordance with religious decrees.

Source: Turkey's Unravelling Economy.