But a weaker lira also risks higher inflation, particularly at a time of rising food and fuel prices.

The weaker lira, which has fallen another 10 percent this year, has made it difficult for Turkish companies to service foreign-currency debts.

The central bank adopted a hawkish bias at its policy meeting last month to counter inflationary pressures resulting from a weaker lira.

In the medium and long term, the weaker lira will help to improve the competitiveness of our customers, it said in a statement.