Central Bank of Turkey increased interest rate to stabilize financial situation in the country, Bloomberg reports.

Weekly repo rate was raised by 625 basis points to 24%. This is higher than economists surveyed by Bloomberg forecasted. Their expectations were 325 basis points.

Lira grew by 5,2% to 6,0254 per dollar. This year Turkish currency lost 40% of its value already.

Financial problems of Turkey made investors to leave emerging markets.

Earlier today President of the country issued executive decree making Turkish companies to conclude contracts only in liras, not in foreign currency. This measure is applied to contracts for buying and selling real estate, transportation, financial leasing, services and products. According to experts opinion, this decree will make chaos. It will be hard to implement in the nearest term. For example, 70% of contracts for rent of areas in shopping malls are made in foreign currency.