Exchange rates, which saw sharp declines throughout the last week, start the last week of 2021 with a horizontal course.
After the 18.40 peak seen on Monday last week, the dollar/TL decreased by 40 percent in 5 days, trading just below 11 liras this morning. Euro/TL, on the other hand, is valued in the range of 12.40-12.45.
The decline, which started with the interpretation of the Currency Protected TL Deposit product as a disguised interest rate increase by the markets, had its effect throughout the past week.
President Erdoğan: When interest rates fall, inflation will also decrease
President Tayyip Erdoğan, in his speeches at the weekend, repeated his thesis that inflation will decrease thanks to the reduction in interest rates, and stated that TL deposits have increased by more than 20 billion liras since the currency-protected time deposit account system was introduced.
In his speech on Sunday, Erdogan said, “Interest is the cause, inflation is the result. I hope we will break this wheel as well, and we will make my nation reach its primary goals.”
In an interview published on A Haber on Friday night, Erdoğan stated that thanks to the currency-protected time deposit account system, TL-denominated deposits increased by 23.8 billion TL as of 1500 hours on Friday.
Expressing that the exchange rate will reach a stable level in a short time, Erdoğan said, “The economic program implemented will especially increase this confidence in the markets. It will ensure the stability of the exchange rate. Especially the exchange rate will become stable.”
Erdoğan stated that they predict that the exchange-protected deposit system will make a “positive contribution” instead of burdening the budget in the long run.
Stating that the food prices in some markets did not decrease despite the decrease in the exchange rate, Erdoğan stated that they would take steps within the framework of the legislation to reduce the prices.
Source: Dünya Gazetesi by www.dunya.com.
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