Lira’s Wild Ride Eclipses Rates as No. 1 Threat to Turkish Firms

Turkish producers say extreme volatility in the lira is hurting them more than high interest rates as President Recep Tayyip Erdogan wages a war against borrowing costs at the expense of price stability.From machinery to packaging and construction, industry has for weeks been battered by unprecedented swings in the lira. The currency has shed just over a third of its value against the dollar since September amid Erdogan’s calls for the central bank to lower rates as he seeks to spur economic growth and shore up his waning popularity ahead of 2023 general elections.The lira, the worst-performing emerging-markets currency in the world, clawed back some losses after Erdogan on Monday introduced emergency measures — effectively an interest-rate hike in disguise — in an effort to stem the volatility. But there’s been little let-up in the currency’s gyrations.