The Turkish lira is expected to be among the emerging market currencies hardest hit by the global economic downturn and possible recession, says a Societe Generale report.

In the short term, the lira and the currencies of other developing countries face new problems, according to a report by Societe Generale strategists.

The French bank said the Turkish lira is likely to fall to about 22 per dollar by the end of the year. That would push the lira's losses this year to 39.5 percent. On Tuesday, the lira fell 0.3 percent to $17.51 to the dollar, pushing the 2022 rate to 24 percent.

The lira lost 44 percent of its value last year after President Recep Tayyip Erdogan ordered the central bank to cut interest rates despite strong inflationary pressures. Consumer price inflation in Turkey reached 78.6 percent in June this year, raising the figure to its highest level since 1998.

Last month, Societe Generale said that inflation in Turkey will peak at 80 percent or more in the coming months. It said interest rates will remain at 14 percent in the second quarter of next year, and pressure from lira sellers is likely to intensify due to high inflation and energy prices.

Fitch Ratings downgraded Turkey's sovereign debt rating to "B," five levels below investment grade, from "B+" on July 8, citing broad concerns about the economy and galloping inflation.

"Turkey's policy is becoming increasingly interventionist and unpredictable," Fitch said, referring to the latest in a series of measures introduced last month that prohibit loans to companies believed to be backed by foreign-currency cash.