Turkish Ministry of Foreign Affairs: We did not sell foreign currency, the recovery of the pound is due to the confidence in Erdogan

Turkish public banks did not sell dollars on the night of December 20, when Turkish President Recep Tayyip Erdogan announced a new economic model, which resulted in a recovery of up to 20% of the pound after the all-time low against the dollar. at 18.41, Finance Minister Nureddin Nebati said on Monday.

They were people who “rushed that night to sell their dollars, thanks to the trust created by our President Tayyip Erdogan,” Nebati allegedly said proudly to Erdogan-owned A Haber television channel. “There were no interventions that night, neither from public banks nor from anyone,” he insisted, trying to convince that the Turkish president’s announcement alone created this momentum.

The Turkish pound rose the most in decades on Tuesday after Erdogan announced emergency measures aimed at securing pound deposits against volatility in recent weeks, which pushed the currency to a record low of 18.41 against the US dollar on Monday. .

The fall in the pound, which is still 35% weaker than at the end of last year, has pushed consumer prices higher, making imports, fuel and daily commodities more expensive in the country of 84 million people, where many find it difficult to buy food and other basic necessities.

Erdogan said last Monday that his government would cover the losses of pound depositors in cases where the devaluation of the pound against foreign currencies exceeds bank interest rates.

Critics say the measure is unsustainable and could cause higher inflation, as it burdens the public budget, making it more vulnerable to exchange rate fluctuations.

Petros Kranias

Read also: