Economists have diverging views on whether the Turkish central bank and President Recep Tayyip Erdogan can stick to a strategy of loosening policy in the face of rocketing prices. Annual inflation in December hit 36%. (Source photos by Reuters)

'Let's pray it holds': Turkey's lira gamble keeps investors guessing

New devaluation-protected savings products halt decline but inflation still a menace

SINAN TAVSAN, Nikkei staff writer

January 17, 2022 07:00 JST

ISTANBUL -- Has the Erdogan government done enough to snap Turkey out of its spiral of currency devaluation and soaring inflation? This is the central question for investors in the country, but after months of unpredictable and highly unorthodox policy moves, some market professionals have simply stopped trying to guess what happens next.