Erdogan is back again and the Turks are doing the opposite

Erdogan is back again and the Turks are doing the opposite



Twilight News

9 hours ago

While Turkish President Recep Tayyip Erdogan stopped holding the microphone to address the people of the northeastern state of Bayport, calling on the Turks to give up dollars and buy the pound in return to support the collapsed local currency, the opposite was happening on the doors of Turkish banks.

Erdogan's call, which came the day the Turkish lira hit the biggest disaster, did not prevent the Turkish president from re-engaging the people on Saturday, asking them to sell the dollar and euro and buy the national currency, but the reaction was reversed.

Bloomberg reported a sharp increase in US dollar withdrawals from Turkish banks, after the currency lost only 20 percent of its value on Friday, meaning that domestic savers lost five percent of their savings.

The field visits showed the fight against the branches of three large private banks to keep pace with citizens' requests for foreign currency.

Liquidity crisis

In two banks, customers were unable to obtain foreign currency as the branches waited for headquarters approval.

And "a bank could not meet a request to withdraw $ 5,000," according to sources.

Bloomberg quoted traders as saying that there was a significant increase in requests for foreign currency withdrawals in all branches.

Speaking on condition of anonymity, bankers spoke of increased demand for foreign currency, citing public fears that measures such as capital controls could be implemented in an effort to avert the crisis.

The Turkish government has announced that it will not impose controls on capital, but this did not ease the fears of the Turks, in what appeared to be a crisis of confidence in the government's approaches to the crisis.

According to Bloomberg, Turkey's Banking Regulatory Commission is in talks with some banks as the banking system prepares for the biggest currency shock since 2001.

The body, known as BDK, said it had not held a meeting on Saturday, noting that consultations with banks were routine.

But Bloomberg quoted four people familiar with the subject on Friday as saying the regulator had asked them to study the impact of interest rates, exchange rate shocks and meet in a teleconference on Saturday, which was also scheduled to discuss the country's liquidity situation.

Asking for coins from abroad

Some banks were forced to ask for money from abroad to meet customer demand, according to one source.

He said Turkish banks are financing electronic foreign currencies for international banks and then paying a commission to transfer material money to Turkey.

Traditionally, the Turks retain a large proportion of their savings in foreign currencies as protection against rampant inflation and currency devaluations.

According to Bloomberg, about half of the bank deposits in dollars or euros, according to the latest regulatory data, which means that half of depositors have lost a fifth of the value of their savings, while the owners of dollars of procedures to impede the withdrawal of funds.

Call "scary"

The Turkish president could not calm the fears of his compatriots who saw the worst day of the local currency. On the contrary, his demand to support the lira by abandoning the dollar, in a big panic, was clearly reflected on the exchange markets.

The Turkish lira fell 7 percent against the dollar on mid-Friday, but retreated again to a 9 percent drop after Erdogan said: "If you have dollar, euro or gold money saved, go to the banks to convert it into the Turkish lira. National struggle ".

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