Erdogan urges Turks to trust his new economic model

Turkish President Recep Tayyip Erdogan said today that Turks should be patient and trust the new economic model followed by his government, which prioritizes economic growth through low interest rates, while the pound has fallen. 2% to a new low record.

The fall of the Turkish pound is due to the aggressive monetary easing of Turkey, which economists and the opposition describe as reckless, as it boosted inflation to 21.3% last month, a three-year high.

Speaking after his cabinet meeting, Erdogan stressed that price increases in Turkey were due to greed and import prices, adding that he would not allow the “major crime” – as he described it – to be stockpiled by any organization.

“We aim for lasting prosperity, lasting stability. The prices we pay will be justified by the benefits we have,” he said.

The pound fell as much as 2.6% to 13.8070 against the dollar before Erdogan’s comments, while it has lost 46% of its value against the US currency this year, reaching a record low of 14.0 pounds last week.

Despite its depleted reserves, Turkey’s central bank intervened in markets twice last week due to “unhealthy prices” as it described them, keeping the pound below $ 14 per dollar.

The central bank has cut interest rates by 400 basis points since September, under pressure from Erdogan, and is expected to ease further this month.

Erdogan added that volatility in financial markets would eventually stop and that price increases due to rising energy costs would stabilize soon. He called on the Turks who own foreign currency to take advantage of the opportunities of his new economic model.

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