Article by Katabella Roberts from our premium news partners at The Epoch Times.
The decline follows a rollercoaster ride of volatility that saw the currency surge more than 50 percent last week after the country’s government announced a number of measures to safeguard deposits held in lira against currency fluctuations.
As of 14:43 in Istanbul (6:43 ET) on Monday, the currency was trading at 11.31 against the U.S. dollar, having reached an all-time low of 18.36 against the dollar last week before rebounding to a high of 11.09 following the government’s announcement.
Turkey’s currency has weakened significantly in recent weeks while Erdogan continues to put pressure on the central bank to slash interest rates, a move he firmly believes will boost exports, investment, and jobs within the country. However, the country has instead witnessed soaring inflation levels, increasing the cost of everything from food to basic medicine.
In a speech late on Dec. 20, Erdogan—who has repeatedly come under fire over his unorthodox approach of lowering interest rates despite rising inflation—introduced a series of measures aimed at protecting Turks from the high cost of living while encouraging them to hold savings in lira as opposed to foreign currency.
The country’s government will pay the difference between the value of savings in lira and equivalent dollar deposits, should its decline against the currency exceed interest rates promised by banks.
“We are presenting a new financial alternative to citizens who want to alleviate their concerns stemming from the rise in exchange rates when they evaluate their savings,” Erdogan said Monday.
“With the interest rate cuts, we will all see how inflation will start falling within months,” he said. “This country will no longer be a heaven for those adding to their money with high interest rates, it will not be an import haven.”
The state subsidy rate on the personal pension system will also be raised from 5 percent to 30 percent in order to boost its appeal, and the stoppage (deductions) on companies’ dividend payments will also be lowered to 10 percent, Erdogan said.
He also noted that export companies who find it “difficult to present prices due to fluctuations in foreign exchange rates, they will be given a future exchange rate through the Central Bank.”
Despite this, critics fear just how sustainable the new policy will be and what impact it could have on inflation levels that are already ravaging the economy.
Meanwhile, Turkish residents are reportedly continuing to hold onto foreign currency. Foreign currencies held by households in Turkish banks from Dec. 3 to Dec.10 rose by roughly $673.16 million, according to the latest data released by the Turkish central bank.
Data from the BDDK banking watchdog also showed that after a wave in the accumulation of dollars the previous week, Turkish individual depositors held $163.7 billion in hard currencies last Tuesday. That figure is virtually unchanged from Monday and Friday when the total was $163.8 billion.
Erdogan told reporters on Christmas Eve that following last week’s announcement, “Turkish lira deposits are increasing since people are putting their Turkish lira reserves to bank accounts with measures to secure the Turkish lira’s value” adding that lira deposits have risen by 23.8 billion.
The lira has lost roughly half its value to the dollar this year.
One Sick Day Proves We Need More Voices in Truthful Media
On October 19, I was sick. It crossed my mind that I had finally gotten the ‘rona, but my wife’s cream of chicken soup and a few extra hours of sleep into mid-afternoon had be back up and running after a sleepless night before.
When I finally stumbled over to my computer in the evening, I was met with a deluge of concern from readers. They asked what had happened as only one article had been posted that day. Generally, we post between 10-20 daily between all of the sites, not included curated and aggregated content. Seeing that we’d only posted my super-early morning article before taking the rest of the day off had readers assuming the worst.
We have a wonderful and talented group of writers who volunteer their time for the sites and their readers. Sharing their amazing perspectives has always been a blessing to us because we cannot afford to hire anyone at this time. But having great writers is meaningless if we don’t have great editors, or at least one additional. My wife helps me read and edit stories from time to time, but I’m a one-man show when it comes to getting the stories posted.
Whenever I highlight our desperate need for donations, I note that we do not receive money from Google ads even though most in conservative media are beholden. I often ambiguously note that the money donated will help us grow. Today, I’m highlighting a specific need. We must get an editor to help take some of the load and to expand on our mission of spreading the truth to the world. One sick day proved that.
The great news is that there is no shortage of people who CAN help. I am emailed variations of resumes every week by people who are much smarter than I am. As much as I’d love to hire some of them, we simply cannot. That takes money and as blessed as we’ve been to receive donations and collect ad money (though not from Google or Facebook), we have still fallen short.
Those who have the means, PLEASE consider donating. We have the standard Giving Fuel option and people can donate through PayPal. We are also diving into what we believe is extremely disruptive technology at LetsGo.finance, the world’s first major donation portal for crypto. I’ll be talking a lot more about them in the near future. Those who prefer Bitcoin can send to my address here: 3A1ELVhGgrwrypwTJhPwnaTVGmuqyQrMB8
We can get the voices out there and we’re willing to shine a spotlight on new talent. We just need the resources to make it happen. If you can help, we would be extremely grateful.
Thank you and God bless!
All ORIGINAL content on this site is © 2021 NOQ Report. All REPUBLISHED content has received direct or implied permission for reproduction.
With that said, our content may be reproduced and distributed as long as it has a link to the original source and the author is credited prominently. We don’t mind you using our content as long as you help out by giving us credit with a prominent link. If you feel like giving us a tip for the content, we will not object!
JD Rucker – EIC