Turkish Economy Struggles Amid New Government Policies

Turkish lira declines to record low against the dollar as Turkey's new presidential administration loosens currency regulations and appears set to abandon previous economic policies.
New finance minister and expected replacement of central bank governor signal shift to more mainstream policies aimed at attracting foreign investors following their exit in recent years.
Weakened lira poses economic challenges including rising debt costs, budget deficits, high inflation and low foreign reserves.
Potential interest rate hike could slow economy or cause recession but weaker lira may boost exports, tourism and construction.
Turkey’s foreign debt levels raise concerns about ability to make payments and possible impact on emerging market sovereign debt.