Erdogan wants Turks to keep all of their savings in the lira

After the lira depreciated dramatically in the last two months, President Tayyip Erdogan stated on Friday that Turks should preserve all of their money in lira and that recent exchange rate volatility was largely under control.

“I want all of my compatriots to store their savings in our own money and to run all of their businesses with our own money,” Erdogan stated in an Istanbul speech.

Advertisement

“Let’s not forget: we’re bound to collapse as long as we don’t use our own money as a yardstick. We shall proceed with the Turkish Lira, which is our currency. Another’s not the case with this or that foreign currency.”

In a speech to a business group, Erdogan urged Turks to deposit their gold savings in banks and reaffirmed his unconventional opinion that interest rates are the cause of inflation.

“We’ve been fighting for a long time to free the Turkish economy from the cycle of high interest rates and high inflation, and to put it on a road of growth through investment, employment, production, exports, and a current account surplus,” the president stated.

“Interest rates have gone up and down. Please, my friends, take this out of our books. Interest rates enrich the wealthy while impoverishing the poor.”

The lira has rallied from an all-time low of 18.4 against the dollar last week after the establishment of a state scheme to protect local deposits from devaluation losses vs hard currencies, while Turks’ wages have been reduced in recent months due to a drop in the currency.

TRYTOM=D3 was trading at 13.295 at 0943 GMT, down more than 40% this year and by far the poorest performer in emerging markets.

Advertisement

The lira crisis was sparked by the central bank’s aggressive interest rate cuts, which totaled 500 basis points since September and were implemented under Erdogan’s urging in order to encourage credit and exports.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Read More

Dubai’s grand new Hindu Temple set to open on Dussehra festival

Dubai’s grand new Hindu Temple is in full swing to be inaugurated this year on October 4 and will be open for the citizens of the United Arab Emirates from the festival of Dusshera, also known as Dussehra, Dasara or Dashain, is a major Hindi festival celebrated at the end of Navaratri every year.

UAE schools join celebration of 51st National Day, host activities

The United Arab Emirates is commemorating its 51st National Day in all glory, unity and courage with a wide range of events. The UAE Cabinet has also announced the 2022 UAE National Day and Commemoration Day holiday. The break will commence on Thursday, December 1, to Saturday, December 3, 2022.

Dubai: Fire outburst in Al Nahda building left residents abandoned

Al Nahda building caught fire on Saturday; the residents of the building remain abandoned and are researching alternative accommodation.

Recent

Student enrollment in universities, colleges hikes by 3.6% in Dubai

The new data reveals that the international higher education institutions in Dubai city of the United Arab Emirates have recorded a significant rise of 3.6% in the enrollment of students.

Zimbabwean preacher, Ismail Mufti Menk says ‘Dubai is my second home’

Dr Ismail Mufti Menk, who is a Zimbabwean preacher and renowned Islamic scholar, said that Dubai is his second home.

India: Voice of Global Virtual Summit to be held on January 12 and 13

New Delhi, India: The special virtual summit called 'The Voice of Global South' is scheduled to be held between January 12 and 13. The event will focus on discussing the priorities of the global south and ensuring a favourable environment during the sitting of Foreign Affair Ministers.