The Turkish government unveiled a new set of measures to counter its soaring inflation. The Turkish Treasury said it would issue domestic bonds indexed to the revenues of state enterprises. This measure was taken in an effort to increase savings in lira assets. The central bank also raised the required reserves ratio for lira commercial cash loans to 20% from 10%. Reuters notes that these measures were taken to boost investors’ confidence in the lira. These measures come as an alternative to traditional measures like rate hikes which President Erdogan has vocally come out against. “There isn’t any policy change available to take inflation under control. All these schemes cause the Treasury to shoulder the burden of yields to be paid to investors”, said ¬†Arda Tunca, Istanbul-based economist and columnist at PolitikYol.

Turkey’s dollar bonds continue to drop with its 7.625% 2029s down 2.2 points to 86, yielding 10.54%.

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