Erdogan: Urges Turks to convert savings into pounds

Billions of Turkish lira have been deposited in accounts under the government program that protects pound deposits from devaluation.

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Turkish President Recep Tayyip Erdogan delivers a speech in Ankara, Turkey, Tuesday, Aug. 14, 2018. Erdogan said his country will boycott US-made electronic goods amid a diplomatic spat that has helped trigger a Turkish currency crisis.The Turkish lira has nosedived in value in the past week over concerns about Erdogan's economic policies and after the United States slapped sanctions on Turkey angered by the continued detention of an American pastor. (Pool Photo via AP)

Turkish President Recep Tayyip Erdogan yesterday called on Turkish citizens and companies to convert their foreign currency savings into Turkish pounds as Ankara seeks to boost demand for the local currency.

Speaking after the cabinet meeting, Erdogan said 163 billion Turkish lira ($ 12,2 billion) had been deposited in accounts under the government program that protects pound deposits from depreciating.

Erdogan changed his tone a few days before the central bank meeting and took a step back from insisting that borrowing costs would be reduced "instantly". now claims it will decline slowly and gradually. 

According to the state-run Anadolu Agency, Erdogan returning from Albania He told reporters that interest rates and inflation would gradually fall "and without haste" and the pound would become more stable, with 2022 being Turkey's "bright year".

Erdogan's remarks echo those of Finance Minister Nureddin Nebati, who told Bloomberg last week that officials would like to see how the economy develops in the first quarter.