A new dive was recorded today, Monday (20/12) Turkish pound, where lost another 6% of its value against the dollar, after the statements of the president Recep Tayyip Erdogan who assured that interest rates will not rise to stabilize the currency.
In particular, Erdogan is pushing the Central Bank every month to cut interest rates despite inflation, which, according to official figures exceeded 21% on an annual basis and is likely to reach 30% in the coming months, according to financial analysts.
In a statement that was broadcast late Sunday night (19/12), but was recorded on Saturday, the President of Turkey invoked the principles of Islam, which forbids interest rate, to justify its policy. “As a Muslim, I will do whatever our religion commands me to do. “God willing, inflation will be reduced when possible.”
Erdogan on interest rates: Do not expect anything else from me
Erdogan made the remarks in response to a call by the Turkish business community late last week calling for action to address the crisis. “The political choices that have been implemented have not only created new difficulties for the business world, but also for our fellow citizens,” said Tusia, a Turkish employer representing about 85% of its business and major exporters. Turkey. “Consequently, it is urgent to assess the damage done to the economy and return to the economic principles that govern the market economy,” Tusia said in a statement issued by its Washington bureau.
Responding to the appeal, Erdogan videotaped the statements that were broadcast last night: “They are complaining about the reduction of interest rates. But do not expect anything else from me».
From January, The Turkish lira has lost 57% of its value against the dollar and for the Turks this collapse translates into an unmanageable price spike, while the country is highly dependent on imports, mainly in the raw materials and energy sector. Prices of basic products such as sunflower oil have jumped by 50% in one year.
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