Turkish inflation pays for the lira crisis and accelerates in December for …
the seventh month, thus touching 19-year highs. The annual inflation rate rose to 36.1% last month, the highest since September 2002 and up sharply from 21.3% in November.
Last week, however, the Turkish government urged citizens to deposit their gold holdings in domestic banks and to keep deposits in domestic currency only. Provision that caused a new thud of the currency. Yesterday, however, Ankara announced that it will ask exporting companies to convert into lira a quarter of the revenues earned abroad (and therefore in foreign currency). The conversion will be managed by the central bank, which in this way will increase its holdings of valuable currencies such as dollars and euros.