Erdoğan meets with Central Bank governor amid lira meltdown

Duvar English 

President Recep Tayyip Erdoğan met with Central Bank Governor Şahap Kavcıoğlu on Nov. 23, as the lira nosedived 15 percent in its second-worst day. 

No statement has been issued with regards to the details of the meeting. 

Shortly after the meeting, the bank issued a statement saying the moves in the currency market were "unrealistic and completely detached" from economic fundamentals.

There was no hint at an intervention to stem the meltdown. The bank said that it could only do so under certain conditions in "excessive volatility" and that it has no commitment to any exchange rate level.

The lira nosedived 15% on Nov. 23 in its second-worst day ever after Erdoğan defended recent sharp rate cuts, and vowed to win his "economic war of independence" despite widespread criticism and pleas to reverse course.

The lira tumbled as far as 13.45 to the dollar, plumbing record troughs for an 11th straight session, before paring some losses. It has shed 45% of its value this year, including a near 26% decline since the beginning of last week.

Erdoğan has applied pressure on the Central Bank to pivot to an aggressive easing cycle that aims, he says, to boost exports, investment and jobs - even as inflation soars to near 20% and the currency depreciation accelerates, eating deeply into Turks' earnings.

Many economists called the rate cuts reckless while opposition politicians appealed for immediate elections. Turkish citizens have said that the dizzying currency collapse was upending their household budgets and plans for the future.