ANKARA, Reuters – The stock market gained steam on Tuesday after a 25% historic recovery from records lows. President Tayyip Erdogan announced a plan that would protect local currency deposits from fluctuations in the markets.

From 13.15 at the close, the currency dropped to 12.21 GMT and then rallied back to dollar.

Erdogan spoke late Monday night and said that the steps would ease the burdens of a currency crisis over the past few weeks. He also encouraged Turks to save liras rather than spend dollars.

However, he didn’t provide details on how the government would finance the inflationary and potentially pricey initiative.

Prior to the announcement, it was at its lowest level of 18.4 against U.S. dollars. It had dropped more than 10%. It rallied to 12 after the announcement, its largest intra-day rally in history. The day ended up 25%.

According to the Turkish Banks Association, $1 billion was bought in the markets following his announcement. Based on calculations by three bankers, approximately $1-1.5 trillion in savings were converted to Lira on Monday evening.

Over fears that Erdogan’s push to monetary easing would lead to an inflationary spiral, the lira plunged to new records this year. It lost 40% in just one month. It was at its lowest point, down 60% compared to the previous year.

Erdogan’s deposit guarantee promise, which Erdogan claimed would discourage Turks from changing their savings into hard currency, was the catalyst for the rapid rebound.

Erdogan stated that he was presenting citizens a financial option to ease their worries stemming form the increase in exchange rates as they assess their savings after a cabinet meeting. He also reiterated his defense of the low-rates policy which initially led to the slide of the lira.

Although the government hails the lira’s recovery as a huge win, economists call his economic strategy based upon low interest rates dangerous. Economists claim that the current inflation rate of 21% will rise to 30 percent next year.

Erdogan’s pressure, the central bank cut rates 500 basis points in September.

Some economists believe the new rates are disguised rate increases that will not reduce selling pressure but may strain the Treasury back-stopping it.

Refet Gurkaynak (head of Bilkent University’s economics section in Ankara) said, “It could have dangerous consequences.”