Leaders in Turkey scramble to stem escalating crisis
ANKARA, Turkey — Turkey’s central bank took action Monday to free up cash for banks as the country grapples with a currency crisis sparked by concerns over President Recep Tayyip Erdogan’s economic policies and a trade and diplomatic dispute with the United States.
The Turkish lira has nose-dived over the past week, accelerating a months-long decline, and tumbled another 7 percent on Monday as the central bank’s measures failed to restore market confidence.
Investors are worried about a confluence of factors: the country’s reliance on foreign loans that may stop flowing as interest rates rise in other economies, like the U.S.