AIRLINK 61.75 Decreased By ▼ -0.73 (-1.17%)
BOP 5.34 Decreased By ▼ -0.02 (-0.37%)
CNERGY 4.46 Decreased By ▼ -0.12 (-2.62%)
DFML 15.30 Decreased By ▼ -0.20 (-1.29%)
DGKC 65.00 Decreased By ▼ -1.40 (-2.11%)
FCCL 17.20 Decreased By ▼ -0.39 (-2.22%)
FFBL 27.51 Decreased By ▼ -0.19 (-0.69%)
FFL 9.26 Decreased By ▼ -0.01 (-0.11%)
GGL 10.00 Decreased By ▼ -0.06 (-0.6%)
HBL 104.80 Decreased By ▼ -0.90 (-0.85%)
HUBC 121.34 Decreased By ▼ -0.96 (-0.78%)
HUMNL 6.50 Decreased By ▼ -0.10 (-1.52%)
KEL 4.44 Decreased By ▼ -0.06 (-1.33%)
KOSM 4.43 Decreased By ▼ -0.05 (-1.12%)
MLCF 35.60 Decreased By ▼ -0.60 (-1.66%)
OGDC 122.10 Decreased By ▼ -0.82 (-0.67%)
PAEL 22.70 Decreased By ▼ -0.30 (-1.3%)
PIAA 31.54 Increased By ▲ 2.20 (7.5%)
PIBTL 5.81 Increased By ▲ 0.01 (0.17%)
PPL 107.00 Decreased By ▼ -0.50 (-0.47%)
PRL 27.20 Decreased By ▼ -0.05 (-0.18%)
PTC 17.66 Decreased By ▼ -0.41 (-2.27%)
SEARL 52.65 Decreased By ▼ -0.35 (-0.66%)
SNGP 62.70 Decreased By ▼ -0.51 (-0.81%)
SSGC 10.53 Decreased By ▼ -0.27 (-2.5%)
TELE 9.05 Decreased By ▼ -0.15 (-1.63%)
TPLP 11.41 Decreased By ▼ -0.03 (-0.26%)
TRG 69.95 Decreased By ▼ -0.91 (-1.28%)
UNITY 23.52 Decreased By ▼ -0.10 (-0.42%)
WTL 1.27 Decreased By ▼ -0.01 (-0.78%)
BR100 6,917 Decreased By -26.6 (-0.38%)
BR30 22,639 Decreased By -188.4 (-0.83%)
KSE100 66,874 Decreased By -268.5 (-0.4%)
KSE30 22,007 Decreased By -82.6 (-0.37%)

ISTANBUL: Turkey’s President Tayyip Erdogan said on Friday the government had burst a bubble in the foreign exchange market by taking steps this week to protect lira deposits against volatility. “We have seen the bubble on the foreign exchange rates disperse in a day with our package of measures,” Erdogan said, adding that the government had gone ahead with its low-rate economic plan despite internal opposition.

Ahead of a meeting with economists and academics, Erdogan said Turkey economy would enter a very different environment in the summer thanks to the “new economic model”. The Turkish lira had plunged on Monday to an all-time low of 18.4 to the dollar, following a months-long slide due to unorthodox interest rate cuts and fears of an inflationary spiral.

Erdogan then announced a scheme in which the Treasury and central bank would reimburse losses on converted lira deposits against foreign currencies, sparking the biggest intraday rally ever. On Friday, he said he expected companies and sellers to cut their prices following the rebound of the lira, including on cars and houses - adding that the government will track down those who do not.

While his plan to defend lira deposits has given Turkish savers some respite and possibly laid the ground for an early election - it also risks piling up debt and stoking already rife inflation.

Comments

Comments are closed.