Turkey’s foreign exchange reserves have been in the billions of dollars since the beginning of the week, meaning that strong action has helped keep the curve afloat.
The lira fell sharply following a recent reduction in interest rates, but it rose sharply on Tuesday when President Recep Tayyip Erdogan announced interest rates. a new way of storing its purpose is to encourage local people to save money for the lira.
But at the same time, the country’s foreign economy fell by $ 5.9bn in the first two days of this week to $ 5.1bn, according to a Financial Times account based on central bank data.
Turkey’s central bank has not announced anything about the government this week and has refused to comment on whether it has sold dollars to support the lira in recent days. But the erosion of its foreign assets indicates that this has greatly helped the lira to recover.
Ugur Gurses, a former central bank employee, said that 50 percent of Monday’s payments on nadir were explained in part by a “major intervention”.
An London-based expert, who asked not to be named, said he calculated $ 6.9bn in the same days – figures ranging from $ 5.5bn to $ 7bn. Turkish bankers also said they had “worked very hard and hard to make Erdogan’s announcement look good,” he said.
The Turkish lira depreciated by 18.4 to US dollars on Monday, down 60 percent, but returned sharply after Ankara announced a number of measures, with the help of the country’s Treasury and central bank, to protect the lira currency. and encourage the currency by referring to foreign currency.
Erdogan announced Wednesday that Turkey is winning its economic war. “We are fighting the oppression of our people and rising prices and interest,” he said in a televised address. “This time, we are achieving what we want.”
Researchers estimate that a strong initial inflow of the week brings the total bankruptcy of a major bank this month between $ 15bn and $ 17bn.
This growth is due to raise awareness among health analysts in foreign currency Turkey.
The bank’s ashes recovered earlier this year after a 20-year decline in efforts to protect the lira and reduce interest rates that burned more than $ 100bn.
Fitch’s accounting agency, which earlier this month changed its view of Turkey to be “bad”, expressed concern over an early December announcement that the central bank would resume action to support the call. The commission warned that if left unchecked, the plan could “disrupt central banks”.
The concern for the Turkish reserves came as analysts warned that the new rescue measures announced by the President could boost the country’s inflation rate, which rose 21 percent in November.
Some analysts suggest that the new system is simply a way to increase interest rates or that the central bank will be forced to print large sums of money to meet its demands.
The government has “thrown a towel” on inflation and is taking the money for change, Hakan Kara, a former banking economist before he was fired in 2019, wrote on Twitter.
“For 10 years, the importance of [low] interest rates have sought to pull off a number of weapons from the helmet, “he said.” We still do not have a sound financial plan.
“You will not have a price to exchange for the inflation rate you already have, but it will still be very difficult to bring inflation to a single level,” said Kieran Curtis, market manager at Aberdeen Standard Investments in London. Differences in inflation between Turkey and the US and the eurozone could weaken the currency and increase inflation, he said.
Advertisers may be tempted to buy Turkish goods because the plot makes money laundering less difficult in the near future, but the costs may be less, Curtis added. Aberdeen sold his Turkish loan in March and has not bought it since.
Erdogan said those worried that the lira could relapse were “soft-spoken” and that the authorities were pursuing lawsuits against those who tried to weaken the lira by encouraging people to buy foreign currency.
Additional reports by Jonathan Wheatley in London
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