Turkey has foiled attacks by domestic and foreign players on its economy after the lira successfully rebounded from record lows against foreign currencies, President Recep Tayyip Erdoğan said Wednesday.
"There are obstacles, risks and traps but Turkey’s determination will overcome these and we will emerge victorious from the economic battle," Erdoğan told fellow lawmakers at the ruling Justice and Development Party's (AK Party) parliamentary meeting in Ankara.
He also noted that Turkey is not doing anything against free-market rules, but is trying to ensure speculators leave the economy alone.
The Turkish lira made an overnight come back on Monday as Erdoğan revealed a new financial mechanism to shore up the currency.
The lira steadied on Wednesday and held gains from what is so far its best week in two decades.
The lira stood at 12.25 to the dollar at 5:39 a.m. GMT, from a close of 12.4 on Tuesday when it rose 6% in a roller-coaster session.
The fresh measures come in the wake of rising prices and exchange rates as the government pursues its "new economic model," which emphasizes opposition to high interest.
Measures being taken by the government to shore up the Turkish lira will benefit each and every one of Turkey's 84 million people, the president said.
"The winner here is not only those who have money in the bank or the exporter; this is for the entire country, each and every one of our 84 million citizens."
Erdoğan said the new instrument would allow potential investors in foreign currencies to get the same results while sticking to the lira.
"Our move to bring exchange rates to a level that reflects the realities of Turkey, within the rules of the free market economy, has achieved its purpose," he said.
The Central Bank of the Republic of Turkey (CBRT) on Wednesday released the first issuance of currency rates to be used as a basis for FX-protected Turkish lira deposit accounts.
According to bank data, the U.S. dollar / Turkish lira exchange rate was 12.35 for buying and 12.37 for selling, while the rates were 13.9 and 13.93 for the euro, respectively.
Comparing the foreign exchange rates at the beginning and at the end of the maturity of resident real persons' accounts, the Central Bank will pay the difference, whichever is higher, to depositors.
Exchange rates are released by the bank daily.
Under the new system, regardless of the exchange rates, depositors will receive the principal and the interest/profit share.
