Turkey is to introduce a business plan as a lira company of record low

Turkey is to introduce a business plan as a lira company of record low
Berat Albayrak, the Minister of Finance and Minister of Finance of Turkey, speaks at a press conference in Istanbul on Friday, 10 August 2018.

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Berat Albayrak, the Minister of Finance and Minister of Finance of Turkey, speaks at a press conference in Istanbul on Friday, 10 August 2018.

Turkey has prepared an economic action plan and will begin implementation on Monday morning to ease investors' concerns, Minister of Finance Berat Albayrak said on Sunday after the lira fell to a new record low in early Asia-Pacific trade.

In an online interview with the daily Hurriyet, Albayrak described the lira's weakness as "an attack," as President Tayyip Erdogan, his father-in-law, said, and said the action plan was ready.

"From Monday morning, our institutions will take the necessary steps and share the announcements with the market," Albayrak said, without giving details of the steps.

Albayrak also said that a plan has been prepared for the banks and the real economy sector, including small and medium-sized companies that are most affected by exchange rate fluctuations. "We will take the necessary steps with our banks and the banking supervision quickly," he said.

He also rejected any suggestions that Turkey could intervene in dollar-denominated bank accounts and said that any seizure or conversion of these deposits into Lira would be out of the question.

The lira fell to a new record low of 7.24 against the dollar during the Asia-Pacific trade, where markets opened on Monday morning. After the comments of Albayrak, the losses went down, and on Sunday at 21:36 clock he stood at 6.8603.

The currency has lost more than 45 percent of its value this year, mainly due to concerns about Erdogan's impact on the economy, repeated calls for lower interest rates in the face of high inflation, and deteriorating relations with the United States.

On Friday, the lira fell by up to 18 percent, the largest daily decline since 2001.

Previously, Erdogan had commented on his opposition to high interest rates, saying that they were an instrument of exploitation and Turkey would not fall into this trap.

In the Hürriyet interview, Albayrak said budgetary policy was important to support and strengthen the central bank's monetary policy. "We will enter a strong fiscal period," he said.

The Turkish banking supervisory authority BBDK stated in a statement that it limits banks' foreign exchange swaps.

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