Turkish President Tayyip Erdogan introduced a series of measures that aimed to prevent further dollarisation and encourage savings to be made in lira, as he repeated a defense of his low-rates policy, even as the lira crashed to record lows.
Speaking after a cabinet meeting, Erdogan said the measures would ensure citizens would not have to convert their lira into foreign currency, while implementing other measures to aid exporters and pensioners.
He said there would be "no turning back" from the new model based on low-interest rates, adding the central bank's interest rate cuts would bring a fall in inflation - currently above 21% - "within months." He repeated that the fluctuations in exchange rates and prices were not based on economic fundamentals.