Turkey Central Bank,who recently suffered a loss of nearly $5.2 billion USD over the course of the past year, has reversed their balance sheets by gains of 250 % as they posted end of year profits. The gain comes after the Turkish Lira lost value to the USD to the tune of 44% and President Recep Tayyip Erdogan implemented measures to make the country’s currency stronger. Citing inflation at the highest rates in two decades, the President lowered interest rates by more than 400 points to rebuild long term value in the Lira.
The Turkish borrowing program designed by the treasury department, anticipated outside investor revenues topping 44 billion Liras across the next thirty days. This windfall is on the heels of Erdogan’s open criticisms of borrowing costs and ever increasing currency exchange rates. Statements from former banking officials also suggest that sales revenue from foreign exchange reserves contribute to increased profitability of local dollars. As of the close of the business quarter, the country profited a total of $10 billion liras all within the span of a 24 hour day. So long as an equal influx of dollars flows back into the economy, the Lira will remain stabilized.
