Erdogan explained the manipulations with the lira

Turkish President Recep Erdogan said that the economic instruments developed by the government saved the country from the vicious circle in which it found itself in the past. According to the president, now the main goal of the authorities and the Central Bank is to get into the top 10 economies of the world.

Over the past year, Turkey's financial system has been going through hard times due to the depreciation of the lira. The national currency has sharply fallen in price after several consecutive cuts in the Central Bank's discount rate: on December 20, the dollar reached a record 18.4 lira, while in January it was worth 7.4 lira.

However, after Erdogan's statements about new measures to counteract the volatility of the exchange rate, the fall of the Turkish currency was replaced by a significant increase – today the dollar is trading near the level of 11.8 lira. At the same time, the president did not say exactly how the new plan will be financed, but, as analysts note– there is no other way at his disposal other than the «printing press».

As you know, the Turkish leader is in favor of reducing the discount rate, arguing that this will lead to lower inflation. Since July 2019, the country's central bank has changed its head three times, and twice since November 2021 – the finance minister: all of them did not support Erdogan's monetary policy.