Losses for the Turkish pound: Lost 20% against the dollar in the last week of 2021

The Turkish lira weakened for a fifth straight day on Friday. Historical gains in December 21-24 were undermined as investors continued to worry about the country’s unorthodox monetary policy and rising inflation, according to Reuters.

The pound was at 13.3 against the dollar with weak trades at 10:06 Greek time, 1.36% weaker than closing on Thursday and falling 20% ​​since the end of last week.

Turkish incomes have eroded in recent months since the pound slipped, although it recovered from $ 18.4 to $ 10.25 last week following the introduction of a government program to protect local pound deposits from devaluation losses. hard currencies.

The situation this week shows that despite the efforts to change the momentum, it seems that investors are not convinced by the opportunistic tactics of the Turkish president, as the pound has lost almost half of its historic gains in the week before Christmas.

Finance Minister Nurettin Nebati said this week that Turkish dollar savings had since declined, but official figures on Thursday showed that local hard currency savings had hit a record $ 238.97 billion last week. At the same time continues to raises concerns among market analysts and economists with its bizarre statements.

At the same time, the net foreign exchange reserves of the central bank fell to a low of almost two decades.

The monetary crisis was triggered by the sharp cuts in central bank interest rates, which stood at 500 basis points since September, under pressure from President Tayyip Erdogan as part of a bid to boost credit and exports.

Economists have stressed that the easing is reckless, given that inflation has risen by more than 21% and is expected to jump over 30% this month and in the coming months due to the devaluation of the pound.