Turkish Treasury and Finance Minister Nureddin Nebti announced that local currency deposits according to the new financial mechanism exceeded 131 billion liras by Friday evening.
This came in a speech delivered by the minister today, Saturday, during a consultative meeting of civil society organizations in Istanbul.
And the new financial mechanism called the “Turkish Lira Deposit Protected from Exchange Rate Fluctuations” guarantees the lira depositor not to fall victim to exchange rate fluctuations, and to obtain the declared interest, in addition to the difference in the dollar price between the time of deposit and withdrawal.
Vegetarian pointed out that the Turkish lira deposit system, which is protected from exchange rate fluctuations, has found a very great response since its implementation on December 20.
"By Friday evening, a large amount exceeding 131 billion liras (the dollar = 13.52 liras) had been reached, and 10 billion liras entered the system on average per day," the minister said.
He expressed his hope that the value of Turkish exports will exceed 250 billion dollars this year, after they achieved 225 billion dollars in 2021.
He pointed out that Turkey's foreign trade deficit decreased by 7.8% last year, and there is no longer a problem related to the current account deficit.
On December 20, Turkish President Recep Tayyip Erdogan said at a press conference in Ankara that his country would launch a new financial instrument that would allow achieving the same level of potential profits for savings in foreign currencies by keeping assets in lira.
control inflation
The Turkish Finance Minister confirmed that inflation in Turkey will drop to single digits by the time of the presidential and parliamentary elections scheduled for mid-2023.
Inflation reached its highest level in 19 years, recording 36% last December, after the Central Bank cut interest rates, and the value of the lira declined by 44% in 2021.
The Turkish minister said that Turkey's only problem now is the high rate of inflation and that the volatility in the exchange rate of the lira has now stabilized.
"With the fiscal policies and the steps we will take, we will enter the elections ... next year with single-digit inflation," he added. "We will all witness and see the change after the first quarter (of 2022)."