>> Global tensions are taking a toll on Turkey's currency and the spending power of its citizens. The lira hitting a new record low Wednesday. It's fallen 17% since September. The slide is on the back of investor worries about the independence of its central bank and strains in Turkey's ties with the United States.
Reuters correspondent, Karen Striker, says there's been a lot of concern about the pair's relations.>> And much of that has centered once around the visa spat, which we have seen between Washington and Ankara. But more lately, there's a Turkish gold trader called Reza Zarrab, who is in US court at the moment.
And he's been accused by Washington of violating US sanctions against Iran.>> Turkey says it's a clear plot against it. US prosecutors have also charged a former Turkish economy minister and the head of a mainly state-owned bank. Investors are also deeply concerned about the political pressure Turkey's central bank is under.
It's trying to balance containing double-digit inflation with the demands of the country's president.>> President Tayyip Erdogan wants to see lower interest rates in order to fuel a boom in construction and in lending, and he's been very, very vocal about that. However, you would normally expect to see higher interest rates or interest rates being pushed up in order to combat that very high inflation that Turkey has.
>> The lira's plunge has helped fuel inflation by driving up the cost of energy and other imports. Turkey imports almost all of its energy needs. The country's Prime Minister, Binali Yildirim, said on Wednesday, the Central Bank will take its own measures and the current situation is temporary, adding that growth and investment will continue.