Erdogan calls on Turkish citizens to exchange foreign currencies for Turkish liras

Turkish President Recep Tayyip Erdogan called on Turkish citizens and companies to exchange foreign currencies in their possession for the Turkish lira in a bid to stop the months-long depreciation of the currency.

The Turkish President made this sort of appeal in December 2021, when a new programme of protecting Turkish lira deposits was implemented. After an initial rebound to a level not reported for an entire month, the Turkish currency made another deep plunge after just a couple of days.

On Wednesday, President Erdogan announced that as much as TRY 164 bn (EUR 10.76 bn) had already been amassed on banking accounts designed to protect Turkey’s national currency from a decrease of value.

In the span of 2021, the value of TRY dropped by 40 percent. The inflation in December amounted to over 36 percent — the highest peak in 19 years.

Analysts ascribe the drop in the value of TRY to President Erdogan’s decision to lower interest rates in Turkey — an unconventional method of dealing with inflation. The Turkish president, as he himself explained, he intends to increase exports and the level of investments in the country by upping the supply of TRY.