Business
President Erdogan successful as Turkish lira’s wild ride against US dollar
Tayyip Erdogan says along with the recovery in the country's economy, the central bank's reserves have risen to more than 115 billion dollars, however, our aim is to make our country one of the top 10 economic powers in world
Istanbul: Turkish lira’s wild ride against US dollar due to the new economic policy of President Recep Tayyip Erdogan.
Following the Turkish president's appeal, the public started to sell US dollars and foreign currency. People lined up to buy Turkish lira with full stock of their dollars. The Turkish lira has appreciated by 50 per cent after billions of dollars in the financial market.
According to the details, the Turkish people once again responded to the appeal of the Turkish President and in just one day, Turkey made history by converting 900 million dollars into Turkish lira. The Turkish president called on the people to convert foreign currency into local currency in order to stabilize the Turkish lira. The Turkish lira closed at 11.8 against the dollar on Friday, due to a move by the Turkish president and a strong public response. The Turkish lira hit an all-time high of 18.4 at the start of the business week.
According to the Erdogan government's scheme, foreign exchange has to be deposited in Turkish Lira. The Turkish government has also promised compensation for losses on Forex deposits and suppled eight billion a week to the money market to stabilize the local currency. Under the agreement, money market dealers did not sell dollars on Monday and Tuesday.
President Erdogan said that that along with the recovery in the country's economy, the central bank's reserves have risen to more than 115 billion. “Our goal is to make our country one of the top 10 economic powers in the world,” he added.
On Tuesday, the Turkish lira rocketed off record lows after President Recep Tayyip Erdogan announced new measures to safeguard local currency deposits against severe market volatility.
In a speech late on Monday, Erdogan said if lira losses against foreign currencies exceed banks’ interest rates, the government will cover those losses for lira deposit holders.