Turkish lira continues rebound as weekly gains reach over 40 percent

The Turkish lira continues a rebound that it started on Monday hitting its highest level against the U.S. dollar in a month. It rose around 10 to 10.25 percent against the dollar on Thursday, with weekly gains of more than 40 percent. 

The rally is mainly a result of a recent government plan to protect deposits, and state banks' support by selling dollars. Despite the rebound, questions remain over Turkey's anti-dollarization plan. The plan could further increase inflation, expand public debt and eat into foreign reserves if the lira begins sliding again.

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