On Friday, the Istanbul Stock Exchange decided to suspend trading after the collapse of the Turkish lira, as its exchange rate exceeded the level of 17 lira to the US dollar. This rate is the lowest level in history.
The Russian "Novosti" news agency indicated that the largest banks in Turkey were among the companies that led the decline today in the Istanbul Stock Exchange.
According to the agency, the shares of the Turkish TSKB Bank fell by 8.85%, while Parsan Bank fell by 8.85%.
The closure decision came amid a sharp decline in the Turkish currency in the recent period, in light of the decision of the Turkish Central Bank to cut key interest rates.
The central bank has cut its key interest rate by 400 basis points to 15% since September 2021, in line with Turkish President Recep Tayyip Erdogan's plan to prioritize exports and lending despite criticism from economists and lawmakers opposed to the policy as reckless. The Turkish currency fell today to the level of 17.099 lire to the US dollar, which is the lowest level the currency has reached in history.
The Turkish lira hit a record low against the dollar on Friday, a day after the Turkish Central Bank announced another interest rate cut as part of President Recep Tayyip Erdogan's economic program.
The dollar has more than doubled in value this year against the lira, disrupting the large emerging market economy.
The Turkish central bank hinted that it would halt the interest rate cut to monitor its repercussions in the next three months.
The bank is facing pressure from Erdogan to cut interest rates in order to boost economic growth.
It intervened four times in the currency market within the two past weeks, as it has sold US dollars to slow the decline of the lira and erode its already depleted foreign reserves.
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