Turkey's finance minister resigns after plunge in value of lira

Following a plunge in the value of the Turkish lira, Turkey's Finance and Treasury Minister Lutfi Elvan has resigned. A presidential decree issued in the Turkish official gazette on Thursday said that Elvan asked to be relieved of his duties. Nureddin Nebati, Elvan's deputy, has been appointed the new finance minister.

Turkish President Recep Tayyip Erdogan had criticised Elvan several times for opposing the lowest interest rate policy. Erdogan insisted on low-interest rates despite the depreciating Turkish lira and rising inflation.

"No offence to our friends that we walked together in this struggle; I can't be together with those who defend high interest rates," Erdogan said on November 17.

Earlier on Wednesday, after the lira plunged to a new record low against the US dollar, the Turkish Central Bank intervened in foreign exchange markets. The lira fell below 14 against the dollar after Erdogan said that he hopes interest rates would continue to fall until Tukey's next election in 2023. The volatility is temporary and a result of economic policy, said the Turkish President on Wednesday.

This year, the Turkish lira lost over 40 per cent of its value against the dollar. Annual inflation, too, hit almost 20 per cent in October.