Middle East

Turkey's Erdogan repeats call for citizens to convert forex, gold holdings

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Turkish President Tayyip Erdogan addresses his supporters during the Grand Congress of his ruling AK Party in Ankara, Turkey, March 24, 2021. REUTERS/Umit Bektas

ANKARA, March 29 (Reuters) - Turkish President Tayyip Erdogan called on Turks to convert their foreign exchange and gold holdings through financial institutions as a "win-win" strategy for the country and themselves, after an overhaul of the central bank sent the lira down nearly 12% in a week.

Erdogan's replacement of former governor Naci Agbal with Sahap Kavcioglu, who supports the president's view that high interest rates lead to high inflation, led to market turmoil amid concerns Turkey may return to unorthodox economic policies, including imposing capital controls to protect its currency.

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Reporting by Ece Toksabay and Ezgi Erkoyun

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