Erdogan unveils steps to protect liraFLUCTUATION GUARDS: The Turkish president said that no citizens would need to switch their deposits to foreign currencies over concern about exchange rate effectsBloombergTurkish President Recep Tayyip Erdogan’s government on Monday announced extraordinary measures to bolster the Turkish lira, including the introduction of a new program to protect savings from fluctuations in the local currency. The government would make up for losses incurred by holders of lira deposits should its declines against hard currencies exceed interest rates promised by banks, Erdogan said after chairing a Cabinet meeting in Ankara. In other steps announced by Erdogan, authorities are to offer non-deliverable forwards to help exporters mitigate foreign-exchange risks emanating from the elevated levels of volatility. Turkey can free itself from a reliance on foreign capital flows by abandoning old policies that prioritized higher interest rates and strong inflows, Erdogan said. Since September, the central bank has cut interest rates in the face of soaring consumer prices.

Source: Taipei Times December 21, 2021 23:29 UTC