According to Turkish President Recep Tayyip Erdogan, the country is thwarting the “speculative financial games from foreign and domestic forces.” Any president’s decision makes the economy suffer even more, adding to its long-lasting recession. However, Erdogan calls every economic defeat a small but inevitable victory. Another decision was a scheme to protect lira deposits. Notably, the national currency has depreciated by more than 200% in 2021. The president also stated he will not let Turks be crushed under interest rates and inflation, and Turkey will emerge victorious from this economic battle. Erdogan definitely shows a lot of optimism about the country's economic policy, but facts prove that it is unlikely to help the Turkish economy combat the crisis. The recent lira drop was triggered by the central bank’s decision to lower interest rates to 14% from 15%. Lately, the national currency has managed to recoup these losses. The lira started to strengthen after the president pledged to save the currency. Erdogan said that the government would encourage citizens to make deposits in lira and compensate for the losses. In particular, the authorities promised to reduce the tax on dividends paid by companies and increase contributions to private pension funds. However, these promises were not enough for a full recovery.
