ISTANBUL: The Turkish lira slipped 0.3% on Monday to equal its weakest level since December last year, when a currency crisis sent it to record lows following a series of unorthodox interest rate cuts.

The lira touched 14.9950 to the dollar, equalling the level reached on March 11 and leaving it 12% weaker than at the end of 2021.

It slid 44% last year. On Dec. 20 it hit a record 18.4, triggering state measures to underpin the lira through big forex market interventions and a scheme to protect lira deposits against depreciation.

Traders said the central bank was likely intervening Monday to keep the lira below a level of 15 against the dollar.

The currency has been relatively stable for much of this year, but skidded in March when Russia invaded Ukraine. Western sanctions on Russia sent energy prices soaring, pushing up Turkey’s already hefty import bill.

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The crisis last year was triggered by an aggressive easing cycle that President Tayyip Erdogan pushed despite rising inflation. That, along with war fallout, pushed inflation to 70% in April and widened the current account deficit.

This threatens to derail Erdogan’s economic plan, which aims to achieve a current account surplus and keep interest rates low to help boost growth, exports and employment.