Baku, Azerbaijan, Jan. 30
By Rufiz Hafizoglu - Trend:
Turkey has new projects to develop the country's economy, Turkish Prime Minister Recep Tayyip Erdogan said, Turkish Millliyet newspaper reported on Jan.30.
The prime minister said that Turkey's Central Bank's attempts to stop further depreciation of the national currency is a very important step, and the government will wait for its results.
Erdogan stressed that the government will announce new economic projects within the next two weeks.
After an attempt by Turkey's Central Bank to stop further depreciation of the national currency, the dollar exchange rate dropped by 3.3 percent to 2.2658 lira.
On Jan.28 Turkey's Central Bank raised three key interest rates to stop further depreciation of the lira. The one week repo rate was raised to 10 percent from 4.5 percent
In addition, the bank raised its lending rate to 12 percent from 7.75 percent and its borrowing rate to eight percent from 3.5 percent.
Earlier Turkey's Central Bank ploughed at least $2 billion into the foreign exchange market to shore up the currency, but the attempt was unsuccessful.
The Turkish lira hit a record low value against the dollar despite the Central Bank's efforts.
Earlier Turkish Deputy Prime Minister Ali Babacan said the increase in the dollar's exchange rate in Turkey is a temporary situation. Currently, the appreciation of the U.S. currency is observed not only in Turkey, but also in Russia and Latin American countries, according to Babacan.
The deputy prime minister stressed that the depreciation of the national currency will not affect the country's economy.
According to the Turkey's Central Bank, the official exchange rate for January 30 is 2,2234 TRY / USD.
Translated by M.L.
Edited by C.N.