The Turkish pound has reached its lowest point against the dollar, Economy and Finance Minister Nuredin Nebati said with pride.
“They expect the dollar to reach 25 or 30 against the pound. Why do this? The Turkish pound is at its weakest point, it has nowhere to go,” Nebati said in a televised interview with Çay TV in his hometown. , Sanliurfa, on Monday.
Nebati said the pound would remain stable as the government introduced special bank deposits linked to the value of the dollar. People have now invested 70 570 billion ($ 38.5 billion) in deposit accounts, he said.
The Turkish pound plunged to record lows late last year, prompting the government to announce plans for special deposits in late December to prevent a total collapse of the currency. The pound lost 44% of its value against the dollar in 2021 and has fallen further 10% this year.
The pound traded with small changes at 14.82 per dollar at 3:49 p.m. local time in Istanbul. In March last year it was at 7.19 per dollar.
The weakening pound and the sharp rise in energy prices pushed Turkey’s inflation to 54.4%, the highest level in two decades. Inflation is expected to accelerate further in the coming months.
It is the government’s duty to ensure that Turkish citizens are not overwhelmed by inflation, President Recep Tayyip Erdogan said in a speech to officials of his ruling party in Ankara on Monday.