USD/TRY tests highs near 13.70 as Turkey’s President Erdogan calls for low rates

Turkey’s President Recep Tayyip Erdogan said that the country “will bring inflation, exchange rate down through low-interest rates” while speaking in an interview with NTV.

Additional comments

"Absolutely" does not believe in high-interest rates.

Stockpiling to blame for inflation, threatens more severe punishments

Central bank forex reserves not an issue, hopefully to increase in coming period.

Believes turkey will reverse "attack on currency.”

Market reaction

USD/TRY spiked to daily highs of 13.7245 on these comments, as the Turkish lira loses 1.41% on the day.