- Marketwatch.com: Turkish lira crisis sends shock waves across emerging-market funds
The slide comes as Turkey and its President Recep Tayyip Erdogan have thus far failed to stem a dramatic decline in its currency, which came to a head on Friday, and accelerated, as President Donald Trump tweeted that he had authorized the doubling of steel and aluminum tariffs on the country.
Turkey’s lira was trading at fresh all-time low against the U.S. dollar, after shedding some 14% of its value at the end of last week. The Turkish lira USDTRY, -7.4892% is down more than 6% on Monday after Turkey’s central bank pledged to provide “all the liquidity the banks need” in a statement Monday.
It also said banks would be able to borrow currency deposits from the central bank at a one-month maturity and one-week maturities. Analysts said Turkey’s reluctance to raise interest rates stood out.