Erdogan: Lira Collapse to End Despite ‘Operation’ Against It
President Recep Tayyip Erdogan stated on Friday that despite efforts to target the Turkish lira in an “operation,” Turkey will overcome the attack and the currency collapse will end.
In a speech at a military graduation ceremony, Erdogan said Turkey was taking the necessary measures in response to the lira slide, Reuters reported.
To try stabilizing the currency and making it more attractive for investors, Turkey has raised a tax on foreign currency deposit accounts.
The lira experienced four days of losses after the government raised taxes on dollar deposits of up to a year and scrapped 10 percent tax on lira accounts with maturities longer than a year. The currency is still heading for a loss of around 9 percent this week and is the second worst performing emerging-market currency this year, Bloomberg reported.
The lira strengthened by some 2.1 percent following the move, trading at 6.51 against the dollar.
The currency has lost close to 40 percent of its value this year, amid concerns over President Erdogan’s economic policies and an on-going trade and diplomatic dispute with the United States.
Despite all these economic and financial problems, Turkey’s Treasury and Finance Minister Berat Albayrak said Wednesday that the government has been seeing the recent fluctuations as an opportunity to strengthen the country’s economy and financial system.