Q&A: Why is the Turkish lira in freefall and should we worry?

As the currency plunges holidays in Turkey get cheaper but markets fear contagion

Turkey's currency is in freefall, its exports face US sanctions, inflation is rising but its president is defiant. So what's going on in the country with 80 million inhabitants that is a key Nato ally?

What has happened to the currency? The lira fell by one fifth against the dollar last week alone. But even before the current crisis, the lira was the world's worst performing currency, dropping by almost 50% against the dollar in the past 12 months.

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