The Turkish Lira, which has lost its value recently with the interest rate cuts of the Central Bank of the Republic of Turkey, was discussed at the Presidential Cabinet Meeting today and a series of measures were determined. President of the Republic of Turkey, Recep Tayyip Erdogan, announced that new instruments were put into use in order to prevent the depreciation of the Turkish Lira and the application of foreign currency-indexed bonds was started. After the announcement, the gram gold price fell sharply by 10%, as it was priced in dollars and dollars. For details cryptocoin.com keep reading.
It is aimed to protect TL deposit customers
President Erdoğan, who was in front of the cameras after the Presidential Cabinet Meeting, announced the new regulation to be implemented for TL deposits. Saying, “We offer a new financial alternative to our citizens who want to alleviate their concerns about the rise in the exchange rate,” Erdoğan stated that if the exchange rate return is above the TL deposit earnings, the difference will be paid directly to the citizens, and if the foreign currency rises, the interest amount will increase automatically:
While evaluating their savings, we offer a new financial alternative to our citizens who want to alleviate their concerns arising from the increase in the exchange rate. From now on, there will be no need for any of our citizens to switch their deposits from Turkish lira to foreign currency because ‘the exchange rate will be higher’.
The President explained how the new instrument will work as follows: If our people’s TL holdings in the bank are higher than the exchange rate increase, they will get this return. If the exchange rate return is above the deposit earnings, the difference will be paid directly to our citizens. This income will be exempt from withholding tax.
Referring to the exporting companies that have difficulty in giving prices due to the fluctuation in the exchange rate, President Erdoğan announced that these companies will be given forward exchange rates directly through the Central Bank. He also made the following statements regarding the transition to a selective loan policy: A structure will be established that will enable public banks to extend a certain portion of their total loans to priority sectors.
Gold under the pillow will be brought to the economy
President Erdoğan stated that there is 5 thousand tons of gold with a value of 280 billion dollars under the pillow and that new tools will be developed with market stakeholders in order to bring these into the economy.
In addition, the President underlined that Turkey has neither the intention nor the need to take the slightest step back from the free market economy and the foreign exchange regime, and responded to the rumors in this direction.
In addition to this, President Erdoğan said, “We will all experience how inflation will begin to decline in a few months with the reduction in interest rates,” and emphasized that he maintains his previously stated approach of “interest is the cause-inflation is the result”. The President said, “This country will no longer be a paradise for those who add money to their money with high interest rates. This country will no longer be an import paradise”, indicating that the low interest policy was not abandoned.
Dollar and gram gold prices crashed with President Erdogan’s speech
During the day, the depreciation of TL reached 10% and the Dollar/TL rate rose above 18, while gram gold prices exceeded 1,000 TL. Following President Erdogan’s announcement of the new regulation to be implemented for TL deposits, the price of gram gold, this time turned down as it was priced in dollars and dollars, and experienced a sharp decline of nearly 10%. At the time of writing, the Dollar/TL rate fell below 15, while the gram gold price decreased to 850 TL.
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