ISTANBUL
A rise in the exchange rate does not portend a crisis in Turkey, said a key advisor to the Turkish President Recep Tayyip Erdogan on Wednesday.
Cemil Ertem's remarks came a day after the Turkish lira hit a new low against the dollar after the Turkish central bank announced that it was holding interest rates at current levels.
"The central bank also did not interpret the rise of the rate as for the long-term, nor as a sign of crisis," Ertem told Anadolu Agency.
"What is important here is that the central bank also affirmed that it sees Turkey's economy as strong in this manner. We also see the Turkish economy as strong. There is no sign of crisis in Turkey [now], nor in the near future," said Ertem.
The currency fell to a historic low of about 2.90 against the dollar after the central bank's rate decision on Tuesday.
The Turkish lira has slid to a series of record lows against the dollar in the past week after coalition talks between the country’s main parties ended without an agreement.
The Turkish central bank has not changed the current interest rates of 7.50 for the one-week repo, and 10.25 percent for the overnight lending rate since May.
