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Erdogan Says Further Steps to be Taken to Encourage Saving in Lira

TURKEY
  • Following steps taken by the central bank to discourage using so-called KKM accounts in favour of regular lira deposits, President Erdogan said late yesterday that Turkey will continue to take steps to encourage citizens to keep their savings in the Turkish lira. “Turkey will continue to grow with investment, employment and production,” he added. “It becomes clearer everyday that acceleration in inflation is temporary.”
  • Turkey’s Foreign Minister Hakan Fidan is scheduled to embark on a diplomatic mission this week, heading to Baghdad and Erbil, as reported by Iraqi media. According to Rudaw, Fidan's visit is aimed at strengthening ties with both the Iraqi federal government and the Kurdistan regional government. The broadcaster has reported that Fidan will engage in discussions with a number of high-ranking officials from both administrations.
  • Erdogan will speak in Ankara at 1200BST/1400 local time and 1730BST/1930 local. The CBRT key rate decision is the highlight of the week on Thursday. The median estimate of the Bloomberg survey sees a further 250bp hike to 20%. Our full preview of the decision will be released today.

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