According to Turkish President Recep Tayyip Erdogan, the country's population welfare has improved significantly. He believes the citizens do not need US dollars and euros. Therefore, the Turkish government will start to tighten its grip on the Turkish residents having foreign savings.
Turkey’s central bank, guided by the president chief, stated that it would charge a commission on deposits in foreign currency. Currently, the commission fee will total 1.5% per year. The Turkish authorities think the residents can pay it. However, neither the regulator nor the president assumes that the citizens are forced to have foreign savings amid the collapse of the national currency.
Notably, Erdogan has long urged the residents to keep their savings in the lira. Despite this fact, the dollarization of the economy increased. So, the president has started to take action. Currently, foreign currency is not prohibited. However, it may be banned in the near future. These statements were accompanied by massive currency interventions. They allowed the lira to recover some of its losses since the start of the rate cuts. However, after the interventions ended, the Turkish currency began to plummet again. Apparently, it is the reason why the Turkish authorities consider taking drastic measures against holders of dollars and euros.
