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May 21
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President Tayyip Erdogan said he was pleased with the reduced volatility of the lira, assuring that the government is working on measures to increase interest in the Turkish currency.

Slowly, gradually and without haste, the lira will appreciate, interest rates will fall in the same way, and 2022 will be our brightest year, he said, Anadolu reported.

The lira has stabilized this month after falling 44% against the dollar last year. It was 1% weaker at 13.56 against the dollar at 1203 GMT, widening losses slightly after Erdogan's comments.

However, annual inflation rose to 36.1% last month, the highest in Erdogan's 19 years in power. Economists predict that inflation will reach 50% in the first half of the year.

The surge in inflation was caused by the depreciation of the lira. The weakness of the currency, in turn, was caused by the fact that the central bank cut the discount rate by 500 basis points to 14% since September.

After the lira fell to a record low of 18.4 against the dollar on December 20, Erdogan announced a lira-support scheme by offering lira deposit accounts that would compensate savers for losses caused by the lira's further weakening.

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