The Turkish lira sank to new depths against the U.S. dollar on Tuesday, after President Tayyip Erdogan vowed his country would win an “economic war of indepedence.” The lira fell to as low as 12.47 against the dollar, before pulling back to 12.08, a 6.2% drop. On Monday, Erdogan reportedly framed Turkey’s weak currency as competitive, saying it would usher in jobs and growth. “We see the games being played on the exchange rate and interest rates. We came out of every struggle we entered honorably by taking a strong stance. With the help of Allah and the support of our nation, we will emerge from this economic war of independence with victory,” he said. The lira has tumbled 63% so far this year, as Erdogan has pressured the central bank to keep cutting rates and the country’s inflation rate officially hovers around 20%, though independent economists see it as more than double that. Turkey’s central bank last week cut its policy rate by 100 basis points to 15%, bringing cuts since September to a total of 400 basis points.
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