Turkish lawmakers to meet with central bank chief: sources

A man checks currency exchange rates at a currency exchange office in Istanbul March 9, 2015. (Reuters)

Turkish Prime Minister Ahmet Davutoglu will discuss recent sharp falls in the lira with Central Bank Governor Erdem Basci and nine cabinet ministers on Tuesday, sources at his office said.

The lira has lost more than 10 percent of its value against the dollar this year, partly on concern about political pressure on the central bank from President Tayyip Erdogan, keen to spur growth with low interest rates head of a June general election.

The lira fell to a record low of 2.6470 to the dollar on Friday, driven by a strong U.S. currency globally as well as by Erdogan’s tirades against the central bank.

The bank cut its one-week foreign exchange deposit rates on Monday, triggering brief gains in the lira, which stood at 2.6080 by 0808 GMT on Tuesday. The main Istanbul stock index was down 0.2 percent.

Deputy Prime Minister Ali Babacan, a top figure in Turkey’s economic management team for over a decade, and Finance Minister Mehmet Simsek would be at Tuesday’s meeting, the sources said.

Babacan, Simsek and Davutoglu met investors in New York last week in an effort to allay concerns about the persistent weakness of the lira and central bank independence.

Last Update: Wednesday, 20 May 2020 KSA 09:45 - GMT 06:45