The Turkish lira continues to rise after the sharp collapse

The Turkish lira has continued to rise since the morning of Tuesday, December 21, after the sharp collapse that occurred the day before. Now the currency is strengthening by about 15% – up to 11.37 lira to the dollar, as evidenced by trading data.

Promises by the Turkish authorities to compensate depositors for the exchange rate difference and encourage local business have improved the lira’s position.

Trading began on the morning of December 21 at a price of 13.5 pounds to the dollar.

On the same day, Turkish President Recep Tayyip Erdogan presented the government’s plan, which aims to reduce volatility and correct the situation with rising inflation. Thus, Ankara does not expect to offset the costs of deposits and deposits in lira, which may arise as a result of exchange rate fluctuations. Investors, Erdoğan emphasized, will not have to convert deposits into foreign currencies for fear of their devaluation.

In addition, the government will expand its participation in reserve funds, participate in audits and adjust the tax system for part of the fees, etc.