ANKARA, Dec. 22 (Xinhua) -- Turkey's new lira deposit mechanism has achieved its purpose of bringing the exchange rate to a suitable level, Turkish President Recep Tayyip Erdogan said on Wednesday.
"The program we announced yesterday in order to bring the exchange rate to a level suitable for the realities of our country has achieved its purpose," Erdogan said addressing his party's parliamentary meeting.
On Monday, Erdogan announced a new financial tool to encourage citizens to make deposits in lira after weeks of currency fluctuations.
Accordingly, the government will compensate the depositor if the yield remains below the exchange rate difference between the account opening and its maturity dates despite the earned interest.
Following the announcement, the lira/dollar exchange rate dropped to as low as 11.22 on Tuesday, gaining almost 40 percent of its value against the U.S. dollar since Monday. Enditem