Turkey raised the tax on foreign currency deposit accounts to strengthen the lira, AP reported.

According to the decision, the withholding tax on foreign currency savings of up to six months was raised from 18 per cent to 20 per cent. Withholding tax on lira deposits of more than one year was, however, lowered from 10 per cent to zero. The lira strengthened by some 2.1 per cent following the move, trading at 6.51 against the dollar.

This year, the Turkish currency lost about 40 per cent of its value amid fears on Turkish President Recep Tayyip Erdogan’s economic policies and the ongoing trade and diplomatic dispute with the US.