The Turkish lira extended its losses to about 4 % during yesterday’s trading, continuing to hit an all-time low in the currency’s history.

The lira continues to lose value even following the Turkish Central Bank’s decision to reduce its foreign exchange reserves, a move that will inject $2.2 billion in liquidity into the banking sector.

Turkey’s local currency is experiencing sharp losses at the start of this week’s trading amid disappointing economic data, as inflation continues to accelerate.

Investors are also awaiting the release of data on Turkey’s current account deficit later this week.

Turkey’s local currency fell by more than 3.9% against the U.S. dollar, pushing the dollar to 5.2821 lira.

Earlier in the session, the Turkish lira had hit 5.2866 per dollar, its all-time low.

The U.S. dollar broke through the 5-lira barrier in trading last week due to the political escalation between Washington and Ankara, in addition to ongoing economic problems.