Categories: World

Turkish lira rises thanks to trick of gold Related articles

After years of almost uninterrupted and brutal inflation, the Turkish lira rose 1.7% this week to $1 to 19.9945 lira. This increase is attributed to the Turkish central bank’s new policy on gold trading.

From this week it is allowed to use liras in the gold trade at the ancient Grand Bazaar in Istanbul. Until now, precious metals were only allowed to be exchanged for dollars. With this measure, the central bank is trying to ease the pressure on the volatile currency, writes Bloomberg.

After years of almost uninterrupted and harsh inflation, the Turkish lira rose 1.7% this week to one dollar to 19.9945 lira. This increase is attributed to the Turkish central bank’s new policy on gold trading. (ANP/AFP)

However, Turkish analysts do not expect this trend to last. On the eve of the May elections, the demand for gold in Turkey has increased significantly, the central bank is selling its gold reserves to meet this demand. Many Turks want to get their hands on relatively stable gold in anticipation of a further rise in inflation.

Turkish President Recep Tayyip Erdogan fell ill during a television interview on Tuesday evening, after which the broadcast was briefly interrupted. He has therefore canceled his campaign activities. According to Turkey correspondent Joost Lagendijk, it appears that the Turkish president is almost recovered from what was probably stomach flu. “I expect he will be back in the country soon.”

Author: Julian Verbeek
Source: BNR

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