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Erdoğan says new economic model will lead to lower inflation

Erdoğan says new economic model will lead to lower inflation

'Latest developments showed that all of our citizens should trust in Turkish lira,' says Recep Tayyip Erdoğan.
26.12.2021 - 14:39

Recent steps by the Turkish Central Bank and Turkey's new economic model will lead to lower inflation, said the nation’s president on Friday.

Since the nation’s new economic plan was announced, bank deposits in Turkey using the local lira currency grew 23.8 billion Turkish liras ($2.2 billion) as of 15.00 Turkish local time (1200 GMT) on Friday, and the amount continues to grow, Recep Tayyip Erdoğan told local broadcaster ATV.

"CITIZENS IN TURKEY SHOULD TRUST IN THE LIRA"

These developments showed that all of Turkey’s citizens should trust in the lira, he added, speaking about a new measure announced Monday in which Turkey will compensate lira depositors for foreign currency fluctuations, while encouraging citizens to move to Turkish lira-based assets.

TWO GUARANTEES

About the new FX-protected Turkish lira deposits, Erdoğan said Turkish citizens have two guarantees, one from the Turkish Central Bank and the other from the Treasury.

Erdoğan stressed that the new instrument was developed to ensure financial stability, and emphasized that it is not against the Constitution.

ERDOĞAN SAYS FX WILL STABILIZE SOON

"Foreign exchange rates will stabilize in a very short period of time," he said, pointing to an end to recent fluctuations in the lira’s value.

The Turkish president argued that the opposition party and its allies want to index the Turkish lira to the US dollar and the euro.