Turkey will require exporters to convert a quarter of their revenue into liras, the latest step in the government’s efforts to boost its reserves and bolster the local currency.
The monetary authorities said in a decree on Monday that the central bank would buy 25% of total income from exports of goods as long as exporters receive payments in dollars, euros or sterling.
The measure aims to bolster Turkey’s foreign exchange reserves by forcing companies to keep some of their revenue from sales abroad in local currency.
This comes after a year of heavy losses in Turkish liraWhich lost nearly half of its value against the dollar last year, coinciding with calls by Turkish President Recep Tayyip Erdogan, the central bank, to cut the benchmark interest rate.
The lira fell 0.3% to trade at 13.3430 lira / dollar, and losses over the past year extended to just over 44%, the largest drop of its kind among the major currencies tracked by Bloomberg.