Turkish lira rebounds after Erdogan vows to prop up deposits

By ZEYNEP BILGINSOY
Associated Press

ISTANBUL (AP) — The Turkish lira is making significant gains after President Recep Tayyip Erdogan announced measures to safeguard deposits in the lira against volatility seen in recent weeks. The lira hit an all-time low of 18.36 against the U.S. dollar Monday but rebounded to a high of 11.09 Tuesday and later was trading at 13.01. The currency has been hitting record lows since the Central Bank began lowering interest rates in September despite soaring inflation. The weakened lira drove consumer prices higher, with many people struggling to buy food and other basic goods. Erdogan says the government will cover losses by lira deposit holders in cases where the lira’s depreciation against foreign currencies exceeds bank interest rates.