Turkey raises tax on foreign currency savings to help lira

Turkey has raised a tax on foreign currency deposit accounts and scrapped another on lira savings as it tries to shore up its struggling currency.

According to a decision published in the Official Gazette on Friday, the withholding tax on foreign currency savings of up to six months was raised from 18 percent to 20 percent. Withholding tax on lira deposits of more than one year was, however, lowered from 10 percent to zero.

The lira strengthened by some 2.1 percent following the move, trading at 6.51 against the dollar.

The currency has lost close around 40 percent of its value this year amid concerns over President Recep Tayyip Erdogan's economic policies and an on-going trade and diplomatic dispute with the United States.