Turkish President Recep Tayyip Erdogan has summoned economic decision makers to his palace to discuss the plunge in the lira, according to two officials with knowledge of the matter.
The currency extended its longest losing streak in seven months on Wednesday after the U.S. exit from the Iran nuclear deal sent oil prices surging. The lira reversed losses after news of the meeting, fueling speculation that authorities may take measures to stem a market rout.
Turkey’s central bank announced measures on Wednesday to boost foreign exchange liquidity and stop the run on the currency. Central Bank Governor Murat Cetinkaya was also expected to attend the meeting at Erdogan’s palace at 2 p.m. local time, according to the same officials, who declined to be identified due to the sensitivity of the information.
Turkey’s government has “never fought the markets” and the central bank will continue to do what’s needed, Deputy Prime Minister Mehmet Simsek said Wednesday. Market fluctuations are temporary and won’t create permanent damage, Simsek said.
— With assistance by Selcan Hacaoglu