Inflation hit a 19-year high of 36% in December after the central bank slashed interest rates under pressure from President Tayyip Erdogan, causing a currency crisis that led to the lira shedding 44% of its value in 2021.
The currency crisis was halted last month, thanks in part to costly currency interventions and to government incentives to reduce the dollar's appeal to savers. Nebati said on Saturday the conversion of forex holdings to Turkish lira will accelerate in coming weeks. Nebati said that as of Friday night more than 131 billion lira had been deposited in accounts under the government scheme that protects lira deposits from forex depreciation.
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