ISTANBUL: The Institute of International Finance raised its “fair value” estimate for Turkey’s lira to 9.50 versus the dollar from 7.50 due to “a sharp deterioration of sentiment” since March, its chief economist Robin Brooks said on Sunday.

Brooks said on Twitter that the IIF raised the estimate twice last year as the country’s current account deficit widened significantly.

On March 20 Turkish President Tayyip Erdogan made the shock decision to fire a well-respected and hawkish central bank governor, sparking a 13% drop in the lira, which closed on Friday at 8.3 against the US currency.