On Wednesday, Turkish President Recep Tayyip Erdogan called on Turkish companies and citizens to exchange their foreign currency savings for Turkish lira. This is to prevent further devaluation of the Turkish currency, which has systematically lost its value in recent months.
Erdogan also called for savings in local currency at the end of December 2021, when a new program was introduced to protect lira deposits. Then the value of the lira quickly rose to an unlisted level for a month, but fell again after a few days.
Erdogan announced, on Wednesday, that 163 billion liras, or 12.2 billion dollars, had already been accumulated in accounts to protect the national currency from devaluation.
During 2021, the value of the Turkish currency decreased by 40%.. Inflation in December was more than 36%. It was the highest in 19 years.
Analysts link the depreciation of the lira to President Erdogan’s decision to cut interest rates in Turkey, which goes against traditional anti-inflation methods. Erdogan – As he argues himself – By increasing the money supply, it wants to increase the country’s domestic exports and investment level.
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