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105 sats \ 0 replies \ @tenderscore 26 Jun 2022 \ on: Turkish bank regulator limits lira loans for firms holding foreign exchange | Financial Times bitcoin
Would like to remind readers that earlier this year Turkey instituted an insane policy. But first, it's good to know that most bank accounts that customers open come with dual accounts: Lira and USD. The problem here of course is that USD is the harder money and can accelerate inflation. So what the gov't did was institute a scheme whereby Lira savings accounts receive not just the large interest rate (14% currently) for holding Lira, but at the end of the quarter, whatever purchasing power is lost to inflation gets reimbursed. This is pure unadulterated ignorance.