Turkish lira declines to record lows following start of Erdogan’s new presidential term

ANKARA, Turkey (AP) — The Turkish lira has tumbled to fresh record lows, extending its slide against the U.S. dollar. The lira weakened by around 7% on Wednesday, hitting a new low of 23.18 against the dollar. The currency has declined by more than 8% since President Recep Tayyip Erdogan formally took office on Saturday after winning a third presidential term. The Turkish currency has been declining in value since 2021, due to what economists say is Erdogan’s insistence on keeping borrowing costs low to stimulate growth despite skyrocketing inflation. Analysts say Erdogan’s government propped up the lira in the run-up to presidential and parliamentary election last month, using foreign currency reserves to keep the exchange rate under control.