Turkish lira charges back after Erdogan's anti-dollarization plan
Before the announcement, the lira was down more than 10% at an all-time low of 18.4 against the dollar
Turkey's lira gained more steam and was up 15% on Tuesday, extending its historic recovery from record lows, after President Tayyip Erdogan unveiled a plan he said would guarantee local currency deposits against market fluctuations.
The currency dipped then strengthened in volatile trade to 11.0935 versus the dollar at 0621 GMT, from a close of 13.15. It stood at 11.6 at 0627 GMT.
In a late Monday speech, Erdogan said the series of steps will ease burdens from a currency crash over the last few weeks and encourage Turks to hold lira savings rather than dollars.
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He did not detail how the government would fund the potentially expensive and inflationary initiative.
Before the announcement, the lira was down more than 10% at an all-time low of 18.4 against the dollar. It later shot back to as far as 12 - its biggest intra-day rally on record - to end the day up 25%.
Some $1 billion was sold in markets after his announcement, the head of the Turkish Banks Association said. According to the calculations of three bankers, around $1-1.5 billion in savings were converted to lira on Monday night
