Debatable 37% Volatility in Turkish - USD Parity Attracts AttentionWed, Jul 27, 2022, 12:43:32 AM
A few hours after 1 Bitcoin was equal to 800.000 Turkish Lira, Turkish President Recep Tayyip Erdogan announced the economic support package. 37% volatility in Turkish-US Dollar parity still remains a mystery.
Turkish Lira was suffering a great devaluation for the past three months. Dollar and other foreign currencies were reaching historical record peaks every day. However, this stopped after the Turkish government announced its new economic support plan.
President Recep Tayyip Erdogan announced the package after the stock markets close. It seems like the new support plan worked very well and Turkey is enjoying its fruit right now, but what is the content of the new plan, and it is healthy? We have discussed everything in this news.
What Is the New Turkish Economic Support Package?
According to the Turkish government, the main reason for the devaluation of the Turkish Lira was because locals trusted foreign currencies more than the Turkish Lira. With the new package, the government is trying to attract the investments of locals into the Turkish Lira.
For this purpose, the government promised to pay the difference between the interest revenue and the exchange rate. People residing in Turkey can open an investment account in banks that want to take part in this new system. They can pick between 3, 6, 9, and 12-month terms for their investment account.
At the end of the term, the government promised to pay the difference between the interest revenue and currency rate differences. Although this was announced two days ago, the banks are still waiting for a circular note for the details of the process.
Turkish Central Bank has cut interest for the last four months, experts claim that this new model is a kind of new hidden increase in interest.
As of today, one dollar is equal to 11.45 Turkish Lira. It was about 18.40 a few days ago and experienced an average of 37% decrease in the last two days.