Turkey’s new economic model will lead to lower inflation, President Recep Tayyip Erdoğan said in an interview on December 24.
Since the announcement of the new economic plan, bank deposits in lira have increased by 23.8 billion Turkish liras ($2.2 billion), Erdoğan told the ATV television channel.
These developments showed that all Turkish citizens should trust the lira, he added.
The Ministry of Finance and Treasury announced details of Erdoğan’s measure earlier in the week, saying the losses of lira deposit holders would be covered in term deposit accounts of three, six, nine and 12 month with interest rates equal to or above the Central Bank’s key rate.
In a statement, the ministry said the exchange rates for the start and end of the deposit would be compared and the higher number would be taken into account for the calculation of potential losses. Any bank wishing to join the system would be allowed to do so, and the daily US dollar rate to be taken into account would be announced each morning.
Erdoğan said the citizens had two guarantees, one from the Turkish Central Bank and the other from the Treasury.
“Exchange rates will stabilize in a very short period of time,” he also noted.