Turkish Finance Minister rejects backdoor FX sales on Dec 20 when lira rebounded

Turkish Finance Minister Nureddin Nebati has rejected that public banks were behind the selling of dollars on Dec. 20, when Erdoğan announced a new economic model and the lira rebounded.

Duvar English - Reuters

Turkey's public banks or institutions did not sell dollars on the night of Dec. 20, when a new economic model was announced and the lira recorded a massive rebound.

"There were no interventions that night, neither from public banks or anyone," Finance Minister Nureddin Nebati said.

"Individuals raced that night to sell their dollars, thanks to the confidence created by our President Tayyip Erdoğan," he told a televised interview to broadcaster A Haber.

The lira currency plummeted to record lows this month on widespread concerns about Turkey's monetary policy. It surged some 50% last week after Erdoğan announced a series of measures to encourage lira-denominated savings, easing the pressure on the beleaguered local currency.

On Dec. 20, Erdoğan said that the government would offer a new financial vehicle that would “alleviate" the concerns of citizens. 

Although the lira gained value after forex market intervention and Erdoğan's announcement, it still remains 35% weaker than a year ago.