The Turkish Lira cratered at the end of last week’s trading losing 1.5% of its value, and a cumulative 7%, against the US dollar April; a trend that has seen the Lira lose 36% of its market value since December 2018.

Markets are turning their back on Turkey as the country’s central bank took the option of an interest rate hike off the table, while credit rating agency Moody’s projects a crippling 2% contraction for the Turkish economy.

With last week’s drop, the Lira has now his its lowest level since October 2018 when Turkey’s central bank scrapped a pledge to raise interest rates despite galloping double-digit inflation in the region of 20%, which cast further doubt over the bank’s policy independence.

Turkey’s Monetary Policy Committee dropped its previous pledge that “further monetary tightening will be delivered”.