Turkish President Recep Tayyip Erdogan unveiled a new package of measures to support lira-denominated deposits, after the national currency lost nearly half its value against the US dollar this year.
According to reports, Erdogan stated at a press conference following a cabinet meeting that Turkey would implement new measures within the free-market economy to stop currency fluctuations. The president announced a new mechanism for lira deposits, stating that the country will compensate lira deposit holders for any loss of wealth if the lira falls in value.
Following Erdogan's remarks late Monday, the lira recovered to around 12.71 per dollar. Earlier in the day, the currency fell to an all-time low of 18.36 per dollar after Erdogan reiterated his policy of lowering interest rates despite rising consumer prices and a decline in the local currency on Sunday.
Erdogan promised to provide "a new financial alternative" to Turkish citizens who want to alleviate their concerns about currency fluctuations. He also stated that the government will put in place measures to ensure that lira assets are not used in a way that generates new foreign exchange demand. According to the President, exporting firms that are having difficulty presenting prices due to fluctuating foreign exchange rates will be granted advance exchange rates by the Central Bank.
Turkish Lira declines to an all-time new low Vs USD
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