Turkey's economic model to show positive results before summer: Treasury Minister

ANKARA

Turkey's economic model will show positive results and rapid transformation before next summer, Treasury and Finance Minister Nureddin Nebati said Thursday.

"The model is based on high level of exports, lowering the current account deficit, and welfare reflected at the society as whole," he told NTV channel.

"This is a special model that will attract direct investment," he added, noting that Turkey received $12.7 billion in direct investment in the first 11 months of 2021.

The Treasury and Finance Ministry announced a new measure Tuesday in which Turkey will compensate lira depositors for foreign currency fluctuations while encouraging citizens to move to Turkish lira-based assets.

Under the facility, if the yield remains below the exchange rate difference between the account opening and its maturity dates despite the earned interest, the agency will compensate the depositor.

The new FX-protected Turkish lira deposits tool will be available for individuals who have a lira deposit account with a maturity of three, six, nine or 12 months.

Nebati said the new FX-protected Turkish lira deposits stood around 10 billion Turkish liras ($880 million) as of Thursday morning, and that amount continued to increase.

"There were speculations and manipulations in foreign exchange rates until Monday night. (The Turkish lira) will reach its optimal level," he said.

Since President Recep Tayyip Erdogan announced new financial alternatives for citizens' savings late Monday night, the Turkish lira recovered strongly in the past three days.

The dollar against the Turkish lira plummeted from 18.36 on Monday to as low as 10.23 on Thursday -- a 44.3% decline, according to official data.