The reason for the sharp depreciation of the Turkish Lira were the actions of the enemies of Turkey, said President Recep Tayyip Erdogan. According to him, the economy of the country have “some problems”, but they led to the fact that over the past three months the exchange rate of the Lira fell by about a quarter.
“There is no difference in the perspective between the terrorists with arms and terrorists with dollars and euros. Their goal is to stage a coup and put the Turkey on his lap. They use the exchange rate of foreign currency as a weapon,” said Erdogan last Thursday in Ankara with the heads of the regions of the country (quoted by Reuters).
Turkey’s President called on residents of the country for a “national mobilization” against speculators, Recalling how during the attempted coup in July 2016, the people took to the streets and blocked the road the tanks of the coup. Now, to thwart the plans of the “enemies of the country”, the Turks, according to Erdogan, needs to defend the Lira and to sell the delayed dollars and euros.
“Anyone who can help the nation to achieve its objectives, becomes a hero,” he said.
The Turkish Lira fell sharply after mid-July 2016, a group of Turkish soldiers attempted to seize power in the country “to restore freedoms and democracy.” On 15 July the dollar to the Lira rose nearly 5%, rising above the level of 3 Lira to the dollar. After the suppression of the coup Lira temporarily strengthened, but the fall of last year, the depreciation passed into the chronic phase.
The past few months the Lira is weakening only, and in the first days of 2017, the dollar and the Euro went daily to new all-time highs. January 10, the Euro has exceeded the mark of 4 lire, 11 January the dollar has reached 3,9423 Lira.
Bloomberg has called the lyre the worst currency in the beginning of 2017. According to experts of Agency, 30 December 2016 to 10 January 2017 accumulation in the Lira depreciated immediately by 7.02%. For comparison, the Mexican peso over the same period depreciated against the dollar by 4.95% and the British pound 1.32%.
On Thursday, Erdogan urged the Central Bank to “stop playing”, indicating that everything necessary to protect the Lira instruments, the Central Bank is. As a result, the rate of us dollar to Lira today fell by about 2.6%, the Euro nearly 2 percent.
“Erdogan’s statements about the presence of the Central Bank’s capabilities and resources to deal with the weakness of the Lira fuelled expectations of additional measures such as direct intervention in the foreign exchange market”, — said Bloomberg investment officer HSBC Asset Management in Istanbul, Ibrahim Aksoy.
In early December, Erdogan has appealed to the people of Turkey with a call to convert their savings from dollars and euros into Lira or gold. Then he said that he had proposed to Russian President Vladimir Putin to transfer payments in trade between Turkey and Russia in rubles and Lira.
Recall that in early December 2014, President Vladimir Putin urged the Central Bank and the government should discourage speculators hunting to play on the drop in the ruble.