Turkey's economy is in crisis after the collapse of the Turkish Lira, affecting the standard of living in a country that has enjoyed years of growth and is threatening President Recep Tayyip Erdogan's grip on power for nearly two decades.

On Thursday, the Lira went through its worst day since the peak of the Turkish currency crisis in 2018, when it plunged to a level of 11.3 against the dollar as well as its lowest levels against the euro after the central bank decided to cut interest rates.

This move is considered to have serious implications for the emerging market economy. By 16:36 GMT, the price of the Lira had reached 11.06 against the dollar.

The Wall Street Journal says the 6% devaluation of the Lןרש and the new lows are a wound inflicted by Erdogan himself, who pushed for interest rate cuts as part of an unconventional economic strategy that he claims would encourage growth.

The rate cut on Thursday was the third in three months, coming after the president fired a string of senior officials who opposed his unconventional economic vision.

There is no justification for this move. There has been no justification for the interest rate cuts we have seen so far this year. "Erdogan is pursuing monetary policy on his own," says Tim Ash, an expert in emerging markets at BlueBay Asset Management, quoted in the Wall Street Journal.

Now, Erdogan, who has come to power as Turkey's middle-class candidate, faces a serious challenge to his rule since he first became prime minister in 2003, the paper says.

The pound has lost more than a third of its value over the past eight months, due to investor and saver concerns, and with rising inflation approaching 20%.

Inflation and its effect on wages, and rising prices for basic products such as food, medicine and energy, eroded support for Erdogan, and "kept away voters who supported him," the Wall Street Journal claims.

In recent years, Turkey's economy has been turbulent due to the "failed military coup" of 2016, instability caused by wars in neighboring Iraq and Syria and a decline in the volume of tourism during the plague. But the current turmoil is a unique set of risks for Erdogan.

"We live in disaster. Everything is expensive. Our currency has been crushed. Our money has lost all its value," Istanbul resident Ayesha Kaya, 60, told the Wall Street Journal.