The Turkish lira continued its decline against the dollar on Monday, and for the first time in history fell below the level of 14, as investors prepare for the next meeting of the Central Bank and expect further interest rate cuts.
Pressure on the lira was also exerted by the decision of S&P Global Ratings, which on Friday downgraded its forecast of Turkey's sovereign credit rating to negative.
Meanwhile, the Turkish Finance Minister said on Sunday that despite a significant increase in inflation in the country, the government does not intend to raise interest rates.
Since the beginning of the current year, the Turkish lira has collapsed by about 48% against the US dollar, and is preparing to record the worst result among emerging market currencies.
As for the meeting of the Central Bank of Turkey, which will be held on December 16, economists expect further rate cuts - by 1%, to 14%.
Economists at S&P Global Ratings warned that another rate cut and a large-scale depreciation of the lira since the beginning of the year will further strengthen inflationary pressure in the country. According to their forecasts, consumer inflation may rise to 25-30% per annum at the beginning of next year.