The Turkish lira lost more than one percent, reaching a new rematch against the dollar on Monday, while President Recep Tayyip Erdogan, who won the second round of Turkey's presidential election on Sunday, decides what economic team will lead the economy.

The lira reached a historic minimum of 20.34 pounds to the dollar after closing trading yesterday at 20.0990 and reported its worst day in eight months.

Since the beginning of the year, the Turkish national currency has collapsed by nearly 8 percent, and over the past decade it has lost more than 90 percent of its value amid rising inflation.

Last year, inflation in Turkey reached more than 85 percent, the highest growth in 24 years. The surge in prices was triggered by unconventional monetary policy promoted by Erdogan to cut interest rates despite high inflation.

Turkish lira posts record decline

Investors' attention is now focused on whether Erdogan will continue to maintain this policy or choose to adopt a more traditional policy after an internal party team has mapped out alternatives in recent weeks.

After the currency crisis in 2021, the Turkish authorities engaged in more active behavior in the currency markets. Daily changes in the exchange rate became unnaturally small, and foreign exchange and gold reserves decreased.

Turkish lira