The Turkish lira fell 4% against the dollar on Tuesday as Turkey prepares for a further rise in inflation after hitting a 19-year peak.

Although President Recep Tayyip Erdogan said the worst of the economic turmoil was left behind, Reuters reported.

The Turkish currency reached 13.5 per dollar.

Economists predicted that the weakening lira and a series of administrative price increases, including on utilities and wages, would continue to contribute to inflation this year.

The lira experienced its worst year in 2021 since Erdogan came to power, weakening by 44%, the worst result in emerging markets. Two weeks ago it hit a record low of 18.4 but then rebounded after the government unveiled a deposit protection scheme.

Erdogan said he would not leave his people to their fate because of "extreme" price increases and unstable exchange rates.

Erdogan's "new economic program" of sharply lower interest rates and an emphasis on exports and credit, despite sharply rising prices, has triggered Turkey's second currency crisis in four years.

In the last few months, the lira has lost up to 50% of its value, leading to higher prices for imports and other goods.