Turkish lira charges back after Erdogan's anti-dollarisation plan ANKARA -Turkey's lira gained as much as 15% in volatile trade on Tuesday, having posted a historic rebound from record lows in the previous session, after President Tayyip Erdogan unveiled a plan he said would guarantee local currency deposits against market fluctuations. The currency opened slightly lower then strengthened to the day's day high of 11.0935 versus the dollar in early trade. In a late Monday speech, Erdogan introduced a series of steps that he said will ease the burden of a weakened currency on Turks and will encourage them to hold lira savings rather than dollars. Alpaslan Cakar, head of the Turkish Banks Association , said the Treasury would meet the costs of the measures, which could potentially be an expensive and inflationary initiative. Some $1 billion was sold in markets after the announcement, Cakar said. While thee government called the lira's rebound on Monday a major win, economists have repeatedly said Erdogan's economic programme based on low interest rates is reckless and expect inflation - currently above 21% - to blow through 30% next year.
