Türkiye continues to make national currency attractive: central bank governor

ISTANBUL, Dec. 7– Türkiye’s “transition to the Turkish lira” continues in line with the targets, said central bank governor Hafize Gaye Erkan on Thursday, talking about the country’s efforts to use the lira in more investments and savings. Speaking at a meeting with the Banks Association of Türkiye in Istanbul, Erkan said the trend of “liraisation” in saving…

ISTANBUL, Dec. 7 (Xinhua) — Türkiye’s “transition to the Turkish lira” continues in line with the targets, said central bank governor Hafize Gaye Erkan on Thursday, talking about the country’s efforts to use the lira in more investments and savings.

Speaking at a meeting with the Banks Association of Türkiye in Istanbul, Erkan said the trend of “liraisation” in saving instruments continues to rise.

The governor added that they welcomed the efforts of the banking sector to support the transition to the lira and reduce foreign currency convertible deposits, underlining the importance of determination and coordination in policies.

To make the lira more attractive, the central bank decisively increased its policy rate by 500 basis points to 40 percent on Nov. 23.

According to a report on its website, the bank has set a target of 60 percent lira denomination in deposits for the first half of 2023. Turkish banks “generally” reached the mark of 50 percent “liraisation” in deposits in 2022, it added.

According to Erkan, the credit flow has also been functioning well in line with the disinflation target.

Türkiye has long been struggling against the persistingly high inflation, which hit 61.98 percent in November, and the lira’s devaluation. The currency has lost about 35 percent of its value against the U.S. dollar since the beginning of this year. Enditem