President Recep Tayyip Erdoğan called on Turkish citizens on Dec. 2 to convert their foreign exchange into gold or the Turkish Lira, adding that there was no option other than cutting interest rates to spur growth.
Following his remarks in Ankara, the lira saw fresh lows against the U.S. dollar.
“Those who keep foreign currency under their mattress should come and turn them into lira or gold,” Erdoğan said in a speech to mark the opening of an automotive showroom complex.
“Such moves will hit some people’s game. Do not worry. We will destroy this game together. We saw such things in 2007 and 2008. I then said the problems would not affect Turkey. I am now saying the same thing. The problems will not even touch us,” he added.
He also voiced his criticism against high interest rates, saying there was “no option” other than cutting interest rates.
“We will open the way for investors with low interest rates. Higher rates will only be good for the finance sector. I also mean here the state-run banks,” he said.
The lira fell to a record low of 3.55 against the dollar after he spoke. The Turkish currency is down some 17 percent against the dollar since the start of the year.
The government has said it will take measures to make it easier for state institutions to do transactions in liras rather than dollars and has urged private businesses to do the same in an effort to shore up the currency.
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