The Turkish lira rose strongly today, Monday, after President Recep Tayyip Erdogan's statements, to reach 12 liras against the dollar, following statements made by the Turkish President today about a new financial instrument.
Erdogan said at a press conference after presiding over a government meeting at the Presidential Complex in Ankara that his country will launch a new financial tool that will allow achieving the same level of potential profits for savings in foreign currencies by keeping assets in lira.
"We will provide a new financial alternative for our citizens who want to allay their fears caused by the high exchange rates, and from now on there will be no need for our citizens to transfer their savings from the lira to foreign currencies for fear of high exchange rates," the Turkish president added.
And the lira - which had fallen earlier today by more than 11% to about 18.4 against the dollar - rose by about 10% after Erdogan's announcement, to reach 12 liras.
The Turkish president reiterated his defense of the low interest rate policy despite the lira's slide to record levels.
Erdogan said after a cabinet meeting that other measures would be implemented to help exporters and those receiving pensions.
The Turkish president stressed that there is no "reversing" from the new model based on low interest rates, adding that the central bank's interest rate cuts will lead to a decline in inflation - which currently exceeds 21% - "within months", and reiterated that fluctuations in exchange rates And prices are not based on economic bases.