Jakarta, CNBC Indonesia – On Friday (31/12), Turkish President Tayyip Erdogan said that his people should save all their savings in the lira. This is because the volatility of the lira exchange rate has recently begun to return to control after the currency weakened sharply in the last two months against the US dollar.
“I want all my citizens to keep their savings in our own currency, run all their businesses in our own currency,” Erdogan said in a speech in Istanbul.
“Don’t forget this: as long as we don’t take our own currency as a benchmark, we will surely sink. The Turkish lira, our money, that’s what we will use. Not with foreign currency,” he added.
Launching from Reuters on Saturday (1/1/2021), Erdogan also asked his people, especially business people, to bring their gold savings into the banking system.
“For some time, we have waged the battle of saving the Turkish economy from a cycle of high interest rates and high inflation, and bringing it on a growth path through investment, employment, production, exports and a current account surplus,” he said.
As is known, the Turkish economy has declined drastically in recent months due to the weakening of the lira. The crisis in the lira was triggered by the central bank’s aggressive rate cut of 500 basis points since September.
This also happened because of the policy pressure that was carried out by Erdoan as part of efforts to increase credit and exports. Unfortunately, the plan failed and made the lira weaken.
(roy/roy)
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