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Turkish taxpayers outraged at cost of lira protection scheme

Turkey’s Treasury faces a hefty bill from a controversial plan to defend the Turkish lira, even as the scheme has failed to make a major impact in reducing dollarization.
A picture taken on Dec. 7, 2021, in Istanbul shows Turkish liras.
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Public outrage is growing in Turkey over the cost of a government scheme to curb dollarization and prop up the Turkish lira, launched hastily in December to stop the dizzying slump of the currency, now that payments have begun to depositors who joined the scheme for three months. 

Unlike the initial assurances of officials, the scheme has put a heavy burden on the Treasury while making only a small impact in curbing dollarization, with more than 60% of retail accounts sticking to hard currency. Moreover, some critics question even the legality of Treasury payments under the scheme, which will be covered largely with taxpayers’ money.

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