The Turkish government will demand that the country’s exporters convert 25% of their revenues into pounds, taking another step in an effort to boost its reserves and support the domestic currency, according to Bloomberg.
The central bank will buy 25% of export earnings as long as businesses are paid in US dollars, euros or British pounds, the monetary authority announced today.
The latest measure is aimed at boosting Turkey’s foreign exchange reserves, forcing companies to withhold a portion of their revenue from overseas domestic currency sales.
This decision follows the fall of the pound in recent years. The Turkish currency lost almost half its value against the dollar in 2021 after successive cuts in interest rates by the central bank, at the behest of Turkish President Erdogan, despite the rally of inflation.
The pound is strengthening more than 3% today at 13.0811 per dollar.
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Source From: Capital
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