The Turkish lira has extended its post-election freefall this week.
The country's recent annual inflation rate for May stood at 39.59%, according to government statistics. Last October saw Turkey's inflation rate soar to a lofty level of 85.51%.
The U.S. investment bank at the weekend projected that the lira still had room to plunge further to deeper lows: to 23 against the greenback in three months, compared to a previous estimate of 19 against the dollar. Around the time of the report's release, the embattled currency was trading just above 20 to the dollar. But it has since weakened sharply — past Goldman's forecast to stand above 23 against the dollar — all within the span of a few days. The lira was last trading at a fresh all-time low of 23.29 against the greenback on Thursday afternoon.
"The currency obviously was overvalued, especially with the inflationary and credit trajectory, but letting the currency go like this will be even more inflationary," the founder of Ziemba Insights, Rachel Ziemba, told CNBC's "Capital Connection" Thursday., according to government statistics. Last October saw Turkey's inflation rate soar to a lofty level of 85.51%.
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