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Turkey’s lira hit its strongest level since August on Friday and cemented its position as the top-performing currency in the world this year.

The developments in the economy boosted the lira by more than 0.7% to 7.09 against the dollar from 7.14 late on Thursday. That extended its gain against the dollar for 2021 to nearly 5%, albeit after an unbroken eight-year slide.

Monetary policies, which have been tightened since November of last year, following the changes in the management of the economy and the central bank, enabled the Turkish lira to appreciate against the dollar and euro.

President Recep Tayyip Erdogan’s reform statements were also welcomed by investors. Due to expectations of economic recovery after the coronavirus in the last quarter of the year, foreign inflow into Turkey reached its highest level since 2013.

Central Bank Governor Naci Ağbal stated that they are planning to recover the decreasing foreign exchange reserves of the Central Bank through auctions and that international swap agreements are not included in their strategies. Ağbal pointed out that inflationary risks continue and stated that they will implement a tighter monetary policy for a long time this year.