Turkish President Recep Tayyip Erdogan said on Friday that Turks should keep their savings in the national currency, the Turkish lira. The recent problems with the depreciation of the currency are now under control, he added.
“I want all citizens to keep their savings in our own money, to do all their business with our currency,” Erdogan said when he appeared in Istanbul.
“Let us not forget that as long as we do not take our own money as a benchmark, we are doomed to sink. The Turkish lira – our money – is what we will go with,” he added.
Erdogan also called for the introduction of gold “stored under the mattress” into the banking system, the Daily Sabah reported.
Following the introduction of the new Turkish-denominated deposit protection program, the value of the lira increased by 50% during the week, bouncing off an all-time low of 18.4 lira for the dollar.
Turkey’s finance minister, Nureddin Nebati on Wednesday, called on citizens to bring lawsuits against economists commenting on the currency’s decline, who “misled them”. The politician accused specialists commenting on Turkish inflation of waging a “psychological war” of calling for the purchase of gold and dollars in order to save savings in the face of the decline in the value of the Turkish lira.
The statement by the finance minister was preceded by the decision of the Turkish banking regulator to file a complaint against more than 20 people, including former central bank governor Durmus Yilmaz, over their comments on inflation in social media, the Daily Sabah reported.
Analysts associate the decline in the value of the Turkish currency with President Erdogan’s decision to cut interest rates in Turkey, which is contrary to conventional methods of fighting inflation. Erdogan – as he himself argues – wants to increase domestic exports and the level of investments in the country by increasing the money supply.
Over the course of 2021, the value of the Turkish currency has decreased by 40%. (PAP)
jbw / times /