The Turkish Lira is anticipated to have lost 44 percent of its value in 2021, the worst performance in 20 years, as a result of Turkish President Recep Tayyip Erdogan's unconventional and erroneous economic policies, particularly his belief that high-interest rates raise prices.

Erdogan urged Turks to maintain their money in local currency and to conduct business in the Turkish Lira on Friday. "We're going to collapse as long as we don't use our money as a benchmark. I want all of my compatriots to save in our own currency, and I encourage them to do so "he stated.

Erdogan had earlier proposed a new deposit programme on December 20, aimed at halting ordinary Turks' desperate efforts to retain the purchasing power of their savings by exchanging them for dollars or gold. The Turkish President guaranteed that if money is deposited in a bank account in a foreign currency-Lira account, the amount of the loss will be levied to the Treasury if the Lira loses value against the foreign currency. Soon after the announcement, between 1 billion and 1.5 billion US dollars in savings were exchanged into Turkish Liras, and the Lira surged to 11.09 against the US dollar, gaining almost 50percent.

Some experts believe Erdogan's strategy is risky because if the Lira continues to devalue, it will raise inflation and place a large fiscal burden on the government, amounting to hundreds of billions of Liras, since the government will have to pay future exchange rate losses.

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