The Turkish Lira Rises 25% Against The Dollar, But Then Fell Slightly

The Turkish lira jumped from very low levels, which it started trading yesterday, but quickly rebounded after Turkish President Recep Tayyip Erdogan introduced measures to protect savings in the local currency from such fluctuations.

Under Erdogan’s plan, his government promised to guarantee deposits in lira, sending the currency up by about 25%, the largest daily rise ever.

The Turkish currency, which lost 44% of its value against the dollar this year, rose during the day on Tuesday, reaching 11.0935 against the dollar, and then later fell to 14.3885 before returning to 12.6 at the time of writing.

The government pledged to pay the difference between the value of savings in pounds and deposits in equivalent dollars.