Turkish President Recep Tayyip Erdogan national supports non-traditional methods to stabilize the exchange rate. Analysts are skeptical.
Laura Pitel writes in the Financial Times that, Erdogan called the recent period of stability in the lira’s exchange a sign that the economy is entering “the strongest period in Turkey’s history.”
Erdogan said interest rates are high snowit turns out. The center of last year bankto reduce interest rates several times the pound to the dollar snowresulted in a serious loss of value. After that, a number of emergency measures were taken to market billion dollarshas relatively stabilized foreign exchange markets, including the release of
The daily says that inflation reached 50 percent in January and it is unclear how long the lira will remain stable.
Some political Analysts think Erdogan is trying to gain time before the early elections. He’s five more years old president scheduled for June 2023 to remain in office parliament and president can advance the election.
“Short-term solutions political can be useful in terms of. It doesn’t take long to turn it into a political success, ”said Alp Coker of London-based consulting firm GPW.
The article emphasizes that five issues need to be addressed in order for the lira to remain strong in the coming months.
The first is that Turkey can maintain its current account surplus. “The government is causing the currency to flow out of the country,” he said and pound exports and It gambles on turning the chronic imbalance between imports into a positive balance, ”the author writes.
For this, consumption in the country should be limited, and this summer should bring good income from tourism. Ukraine and Russia It is also important to prevent tensions between. Because the conflict means an increase in the price of energy imported by Turkey.
Other important issues are the conversion of Turkish money into dollars; the return of foreign investors to Turkey; Extension of the deadline for repayment of debts of Turkish companies; center bankwill depend on the ability to continue to intervene in the market, the newspaper writes.