Lira may end the week with a record rise

The Turkish lira has finally started to grow, demonstrating the best weekly dynamics in history and rising by 44% thanks to the intervention of the Turkish Central Bank for billions of dollars. In addition, President Tayyip Erdogan announced a plan to support the national currency.

On Monday, the lira reached another historical anti-record, dropping in price to 18.4 per US dollar. The main pressure on the currency was exerted by repeated interest rate cuts by the central bank, as well as fears of an inflationary spiral. 

The current rate of the Turkish lira is 11.75 per dollar. The currency started to grow after the president's words that the authorities intend to take a number of steps to combat the consequences of the collapse of the currency in the last few weeks. Erdogan also hopes to encourage the population to keep savings in lira, not dollars.

Analysts note that in the first three days of this week alone, the net foreign exchange reserves of the central bank of Turkey fell by $8.5 billion. And in December, the drop was almost $18 billion.