The Turkish lira fell 14 percent against the dollar, almost to a historical minimum. The rate jumped to 8.0476 lira per dollar.

The currency collapsed after the decision of Turkish President Erdogan to fire the head of the Central Bank of the country, Agbala. The central bank raised the key rate from 17 to 19 percent on March 18. This was followed by a reshuffle, and Sahap Kavtsioglu became the new chairman of the country’s Central Bank. Heretofore, he opposed the rate increase.

Erdogan fired the third head of the Central Bank in the past two years. This decision by the Turkish president shocked investors, who praised the country’s central bank’s recent monetary policy. For a moment, the lira was the best emerging market currency in 2021.