Turkey’s currency tumbled more than 10% on Monday, putting it on course for its biggest single-day selloff since 2018, after the abrupt replacement of the country’s top central banker late last week.

The turmoil came despite an attempt by the bank’s new governor, Sahap Kavcioglu, on Sunday to reassure markets by saying taming inflation is its main objective. Mr. Kavcioglu had been installed late Friday by President Recep Tayyip Erdogan, a day after the central bank had increased interest rates.

In Asian trading hours Monday, the first chance markets had to react to the news, the lira fell from 7.219 per dollar to as low as 8.280, before regaining some ground to stand at 8.055 per dollar by early afternoon Hong Kong time, according to FactSet. In November it hit a record closing low at 8.5249, according to Dow Jones Market Data.