Turkey scrambles to thwart rush to US dollar

Turkish authorities have scrambled to stem the markets' rush to the U.S. dollar by issuing smoother statements about the Central Bank, after the Turkish Lira plunged to a series of historic lows.

Speaking to reporters in the capital Ankara, President Recep Tayyip Erdo?an said he would hold talks with Central Bank Governor Erdem Ba?ç? and Deputy Prime Minister Ali Babacan after the lira's latest decline to a record low.

Erdo?an noted that Ba?ç? and Babacan had requested talks with him and they would meet after Babacan returns from his ongoing visit to New York City.

However, while stating that he would be meeting with the two internationally trusted economic figures, the president also continued to rail against what he called the "interest rate lobby."

"The work of the interest rate lobby is known. The latest developments are completely due to dollar-euro moves. Those who decide to invest excessively in the dollar may end up being stranded," he said.

His words contrasted with Deputy Prime Minister and government spokesperson Bülent Ar?nç, who said that nobody should "tell the Central Bank what to do," speaking in a televised interview on March 6.

"It is not appropriate to tell the Central Bank what to do and to intervene its moves, which it takes in line with the legal framework," Ar?nç said in an interview with NTV.

"It was not necessary to ask for more rate cuts from the Central Bank, as it is in line with the economic rules for Turkey to have rates of around 8 percent, with an inflation rate at around 8 percent," he added.

The lira firmed to below 2.58 against the dollar from an all-time low of 2.6290 overnight after Erdogan's remarks, but weakened to a fresh record low of 2.6365 after...