Turkish lira slides as Erdogan calls for lower interest rates

Erdogan appoints himself chairman of Turkey's sovereign wealth fund

Erdogan appoints himself chairman of Turkey’s sovereign wealth fund

Later on Thursday, Turkey's central bank increased its one-week repo interest rate to 24 percent from 17.75 percent.

Turkish President Recep Tayyip Erdogan has blamed an economic "attack" for the country's currency crisis. Financial markets have grown increasingly concerned that Turkey is in danger of adding its name to the list of countries seeking a rescue loan from the International Monetary Fund.

Several emerging markets have confronted the same struggles, dogged by a strengthening US dollar that makes it more hard for countries such as Turkey to pay back hefty external debt. However, the currency pair is still up by over 9 percent since the lira meltdown and almost 40 percent since the start of 2018. Inflation also soared this month to a 15-year high of nearly 18%. The lira has fallen some Forty percent in fee towards the dollar since the year's starting up, prompting fears of contagion amid a grand wider rising markets shakeup.

Investors have focused their concerns on Ankara following Erdoğan's re-election and his grab for control of the country's economy.

Erdogan, a self-described "enemy of interest rates", picked his son-in-law, Berat Albayrak, as finance minister in July.

Relations with the United States deteriorated last month after Washington imposed sanctions on two Turkish ministers over the detention of an American pastor and President Donald Trump doubled steel and aluminium tariffs on Turkey.

'As of today I have not seen the central bank fix inflation rates as they promised, ' Erdogan told a conference in Ankara.

The development comes after reports last month that the lira had tumbled, dropping to a record low amid a diplomatic and trade row with Washington.

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Governor Cooper said there have been "several hundred" rescue operations and "there are still some people they need to get to". Two other people died in North Carolina's Carteret County, according to the county's emergency management services office.

Following the news, the Turkish lira rose 5 percent in value against the USA dollar, reversing its 42-percent fall this year against the American currency.

"It's now my phase of patience but there is a limit to this patience", Erdogan told members of his ruling AK Party in Ankara on Friday.

"We can not allow the use of the tool of exploitation that is interest rates", Erdogan told a meeting in Istanbul on Thursday. "My sensitivity to interest rates is the same, and that's not a crisis, it's a manipulation, do not be mistaken, that's going to be overcome", added the Turkish President.

The central bank's move makes Turkey's interest rate one of the highest in the world.

Purchase, sales and rental contracts of moveable and immovable properties and vehicle leasing made in foreign currencies will be converted into Turkish lira within 30 days, according to the decree.

In 15 years inflation was never in line with central bank targets. It is meant to be independent but has been coming under increasing pressure from Erdogan.

"The central bank will continue to use all available instruments in pursuit of the price stability objective", the central bank's monetary policy committee said in a statement.

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