Tuesday, December 21, 2021
Islamabad News advertisment DW News December 21, 2021) The Ankara government has so far announced a number of measures against the sharp depreciation of the Turkish lira. President Recep Tayyip Erdoan has said that the government wants to protect the money saved by ordinary citizens and also to prevent any significant fluctuations in the value of Turkish Lira.
The announcement resulted in the Turkish lira, which had hit a record low against the US dollar and euro earlier this week, raising its exchange rate by 25% against the two major currencies. Here it is.
Protection of public savings
President Erdoan announced after a cabinet meeting that in the future the financial assets deposited in the banks will be better protected as savings by the Turkish people.
According to Prime Minister Recep Tayyip Erdoآنan, if Turkish citizens have deposited their money in banks and the relevant banks have promised a profit at a fixed rate, if the depreciation of the lira has been less than this profit, Financial loss to such citizens will also be compensated.
Inflation rises in Turkey, lira depreciates 'historically'
President Erdoan said, "Now no Turkish citizen will have to convert his financial savings into foreign currency instead of lira, simply because he fears that he will use the value of lira over financial gain as interest. The loss will be more due to reduction in.
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Immediate positive result of the presidential announcement
Just hours before President Erdoan's statement on the country's economy and currency fluctuations, the country's financial markets were experiencing extraordinary fluctuations for the second day in a row this week. During this time, the value of one US dollar was more than 18 Turkish lira for the first time, while one euro was also valued at more than 20 lira.
The Turkish currency fell 14 percent after President Erdoآنan fired the head of the central bank
The immediate result of Prime Minister Recep Tayyip Erdoan's announcement and commitment to safeguarding public savings was that the Turkish lira appreciated by almost a quarter against the US dollar and the European common currency, the euro. By Tuesday afternoon, the Turkish currency had strengthened so much again that the US dollar was at 13.27 lira and the euro was at 14.97 lira.
Turkish people should save US dollars, save in lira: Erdoآنan
The reason Lira is under constant pressure
The Turkish currency, the lira, has been under constant pressure in recent weeks and months in terms of its exchange rate, largely due to the persistent decline in the credibility of the Turkish central bank. President Erdoآنan has recently fired several heads of the country's central bank.
The central financial rate has been cut by the state financial institution since late summer this year, even though inflation in the country had risen sharply to 21 percent.
Onions also became politically important in Turkey
According to many experts, President Erdoآنan is constantly putting pressure on the Turkish Central Bank. He has been urging the bank to keep the central interest rate low at all costs.
Most financial experts were against the presidential pressure and such demands, but the result was that President Erdoآنan fired many members of the central bank council who disagreed with his monetary policy.
At the same time, it was observed that as the value of the lira depreciated, so did the inflation in the country. That is why many economists say that President Erdoآنan's current monetary policies could be politically dangerous for him in the future.
