Turkish lira rises sharply after record drop the day before

The national currency of Turkey rose sharply on Tuesday. The dollar was trading at 11-12 lira. On the eve of, the Turkish currency fell to 18.4 lire. However, in the evening it began to grow. This happened after the speech of President Erdogan. He said that the government will take the required measures to bench the high volatility in the foreign exchange market. In particular, the Turkish authorities intend to encourage the opening of bank deposits in the lira. And losses in the event of a sharp change in the national currency rate will be compensated. Expert Arda Tundzha said that on Monday evening the country’s state banks were selling foreign currency in a large amount. In addition, the markets calmed down a bit after the information about state control over capital appeared. However, Arda Tunca believes that such methods cannot clear up the trouble existing in the Turkish economy. This year, the national currency has fallen in price by 60%. The most significant drop in its value was observed in recent months against the backdrop of the Central Bank’s decisions to cut the key rate.

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Arseny Kudrin

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