Turkey’s lira weakened to a record low beyond 7.49 against the dollar on Wednesday under the impact of rising risk aversion, which raised selling pressures globally.
The lira hit a low of 7.4920, bringing losses against the US currency this year to nearly 21 percent, among the world’s worst performers. However, it has outperformed emerging market peer currencies in the latest sessions.
By 07:45 GMT, the lira edged back to 7.4870.
The central bank has tightened credit since a sell-off hit the lira from the end of July. The average cost of funding rose and then steadied near 10.15 percent in recent days.
Turkey can capitalize on coronavirus: Finance Minister
In response to emailed questions from Bloomberg, Albayrak said all leading indicators indicate economic recovery is gaining pace in the third quarter and Ankara expected the second half recovery to be “V-shaped”.
“I believe our growth rate will be significantly above 5 percent in 2021 if there won’t be another major wave in the outbreak,” he said.