President Recep Tayyip Erdoganmade very critical statements about the economy in the live broadcast he attended today. Erdoğan explained the new initiative, emphasizing that they have developed a strategy especially for the citizens to buy foreign currency continuously:
Deposits Against TL
If the deposit earnings of our citizens’ TL assets in the bank are higher than the exchange rate increase, they will be able to obtain this return. If the exchange rate return exceeds the deposit earnings, the difference will be paid directly to the citizen. This income will also be exempt from withholding tax.”
The striking point in Erdogan’s statement was that if the deposit earnings of the citizens’ TL holdings in the bank are lower than the return on the exchange rate increase, this would be directly covered by the state.
This means that if the deposit return of a citizen’s money in the bank is defeated by the exchange rate increase, the loss will be covered directly by the treasury. The news that no withholding tax will be collected from this income seems to encourage investment in TL.
It is known that the US dollar went up to 18.23 before this speech. With the announcement of this news, there were sharp decreases in the USDT/TRY price on crypto currency exchanges to the level of 15.65. Although traditional markets in Turkey are closed as of now, it is seen that the US dollar is fixed at 17.40.
The statement in question has caused such a sharp decline for the first time after days in the rise of the US dollar, but the real effect of this will be evident when the markets open tomorrow.