Prices are already up 16 percent since a year ago and this week's drop will make that worse.
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Turkish President Recep Tayyip Erdogan spoke before the nation twice on August 10, but the country's currency continued its descent, reaching about 6.4 lire per dollar, a decline of about 14.6 percent.
The Lira has lost almost a third of its value this year, as relations with the United States have become increasingly strained.
Ankara's rocky relations with Washington took a further hit as President Donald Trump lobbed fresh salvoes via Twitter against Turkey, plunging the sagging Turkish lira to new lows against the dollar.
"As he stated, the President has authorized the preparation of documents to raise tariffs on imports of steel and aluminum from Turkey", said White House spokesperson Lindsay Walters. He added, "Our relations with Turkey are not good at this time!".
Ankara sent a delegation this week to Washington to meet with both the State and Treasury Departments to resolve some of the disputes but those talks showed no signs of breakthrough.
In Washington, a Turkish delegation has reportedly been trying to thrash out a deal to restore working relations, but it has been unable comply with United States demands, including the release of Brunson and other prisoners. Erdogan has frequently blamed an "interest rate lobby" and Western credit ratings agencies for trying to bring down Turkey's economy. He returned to his familiar refrain of urging Turks to use their reserves of dollars, euros and gold to buy up lire.
"This is a national, domestic battle". The first one was Erdogan gave a speech doubling down on his failed policies, saying once again all their problems were the result of an "economic war" being waged against Turkey.
"The dollar can not block our path".
As the crisis swelled he told his supporters not to worry.
The tensions with Washington have, for investors, underscored Turkey's authoritarian trajectory under Erdogan. It is obvious how it will be done: "since the final decision-maker of all policies in the new regime is the president, the responsibility of regaining confidence is on his shoulders", said Seyfettin Gursel, a professor at Turkey's Bahcesehir University. That makes a loan in dollars that much more expensive to repay.
Trump commented on the issue as the Turkish lira has fallen 36 percent in 2018, and the country faces increasing debt without foreign investment. "Turkey will fight economic hitmen just as it fought the coup plotters".
This did nothing to revive the currency.
But the trade minister, Ruhsar Pekcan, said: "We implore President Trump to return to the negotiating table". "Albayrak's plan was uninspiring at best".
Mr Erdogan has been putting pressure on the central bank to not raise interest rates in order to keep fuelling economic growth.
His finance minister later promised that the central bank would remain independent and that inflation would come down.
"It seems that the Erdogan administration may now have missed its chance to regain any central bank credibility and even when rates do rise, it is likely to be a case of too little too late".