Lira in Massive Rebound, Up Nearly 15% on Extraordinary Support Measures

Source: Bloomberg

The Turkish lira posted extended gains to nearly 15% against the US dollar after President Recep Tayyip Erdogan came up with extraordinary interventions to boost the currency. TRY USD up +3.76%

• The lira gained almost 15.1% to stand at 11.3165 per dollar as of 9.15 a.m. local time on Tuesday after growing nearly 16.4%.
• The currency rebounded from a record low of 18.3633 per dollar early on Monday, posting its biggest daily increase since 1993.
• Erdogan’s government posted measures, including the creation of a new program that will protect savings from deterioration in the local currency.
• Erdogan stated that the government will make up the losses suffered by holders of lira deposits after the lira’s declines against hard currencies surpassed interest rates promised by banks.
• Before Monday’s bounce back, the lira had lost nearly 50%of its value against the US dollar since September, with the rates of declines gaining pace after Erdogan unveiled an economic program to lower borrowing costs.