The Turkish lira’s decline intensified on Wednesday, days after the resignation of Central Bank Governor Hafiza Cay Erkan.
The change in leadership and high inflation have prompted speculation of further interest rate hikes, despite Erkan previously hinting that hikes would end in January.
In his first written statement since his appointment, new governor Fatih Karahan emphasized price stability as the central bank’s top priority.
Bloomberg reported that interest rate cuts are likely to be postponed until at least the end of the year under Karahan’s leadership.
The Turkish currency has depreciated by approximately 0.9% to 30.60 lira per dollar, with the pace of decline accelerating after a period of marginal daily depreciation.