Turkish central bank stuns market by hiking interest rates to 50%
theguardian.com
Hawkish rise 10 days before local elections is seen as a signal of independence from politics
Turkey’s central bank unexpectedly raised interest rates to 50% on Thursday, citing a deteriorating inflation outlook and pledging to tighten further if it looks like inflation is significantly and persistently worsening.
The hawkish move came 10 days before local elections and was seen by analysts as a signal that the central bank was independent from any political constraints and determined to tackle price rises.
The lira rallied by as much as 1.5% to 31.91 against the dollar in response to the hike from the previous 45% rate, reversing weeks of steady declines in the Turkish currency, and Turkey’s dollar bonds extended a rally.
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That Turkish Lira has always been crazy (https://en.wikipedia.org/wiki/Turkish_lira) Check out this graph: https://en.wikipedia.org/wiki/Turkish_lira#/media/File:Euro_exchange_rate_to_TRY.svg
Wow! 1960 1 USD would give you 11 Turkish Lira.
Edit:
Today2005 1 USD will make you a millionaire in Turkish Lira.So apparently they are used to their currency devaluing fast.
I must be missing something (or it was a joke that went over my head, same thing really)
If I look up the conversion it currently says the 1 USD is 32 Lira.
Where are you getting the millionaire part?
Sorry 2005: https://en.wikipedia.org/wiki/Turkish_lira#
They made a revaluation.
This is the second Turkish Lira, since 2005 (TRY)
The 1965 Turkish Lira (TRL) got devalued so much that they had to redenominate. Similar to what happened to Pengő -> Forint in Hungary after WW1.
1 USD = 32M TRL 1 USD = 32 TRY