Lira for months on a downward spiral: Erdogan’s Turks, calls to foreign currency exchange n-tv.de NEWS

Saturday, 03. December 2016

in view of the tense security situation in Turkey, the Turkish currency loses more and more value: the President Erdogan is a thorn in the eye. In a speech, he appeals to the citizens, their reserves in Lira to exchange. And the Istanbul stock exchange.

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The Turkish President Recep Tayyip Erdogan has made his country people asked their foreign currency in domestic currency to exchange or to invest in Gold. “To those who have foreign money under the pillow: it Converts into Gold, converts it into Turkish liras,” Erdogan said in a televised speech in Ankara. “Let the Lira to gain in value! Let the Gold gain in value!”

The Turkish currency is for months on a downward spiral. Cause of uncertainties about the political Situation in Turkey and growing Concerns are due to the tense security situation. In November alone, the currency slipped against the Dollar by around 13 percent. Erdogan called on the banks to reduce interest rates. “There is no other choice but to cut interest rates,” he said.

On Thursday of last week had raised the Turkish Central Bank its key interest rate surprisingly significantly from 7.5 percent to 8.0 percent. They continued with this step, on Erdogan’s calls for interest rate cut. The effect of the first rate hike since the beginning of 2014 was out of the race, however, the Lira lost more of its value.

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After Erdogan’s speech, the country’s currency crashed in addition to new record values. A Dollar was temporarily 3,5363 Lira, for the Euro 3,7664 Lira was paid. Within one year, the Lira has lost more in comparison to the Euro by more than 20 percent. Later, the Istanbul stock exchange announced, but you’ll have to convert to Erdogan’s call all of their foreign exchange reserves in domestic currency prompt the Lira recovered somewhat.

In his speech, made Erdogan for the weakness of the Lira unspecified forces responsible, the games with the currency, “games”. However, going to defend the country, he announced. “Don’t worry, soon we will destroy this game.”

source: n-tv.de

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