2024-01-13 16:45:57
The Turkish lira has returned to its decline to record levels, despite the rise in interest rates to 42⁒. The reason is that the inflation rate is still higher than the interest rate, and has reached about 60⁒ after it had reached 82⁒ last year.
Published on: 01/13/2024 – 17:45
2 minutes
The Turkish lira lost about 80⁒ of its value during the past five years, and about 37⁒ during the past year, and this is the result of an expansionary financial policy imposed by President Erdogan on the ministers of finance and economy and the governors of the central bank. The goal was populist, which was to secure victory in the elections, because the austerity policies It usually leads to defeat, especially in light of the difficult political circumstances that Turkey has experienced in recent years, including disputes with Europe, the United States, the Kurds, and Syria, in addition to Greece, Libya, etc.
After President Erdogan was reassured of his victory in the elections, he adopted an austerity financial policy, this time, about a few months ago with a new team of ministers and governors, whose main characteristic is that they gain the trust of Western financial companies because they have worked in them for many years, but what comes out of the bottle will be difficult to return before Some time.
Therefore, this austerity policy could give its results after some time, especially since Erdogan has many promises and agreements with the Gulf countries to invest in Turkey, but this may be at the expense of the local elections that will take place after a few weeks, especially in the main cities.
It is clear that President Erdogan is trying to win over the street this time, not through his wallet, but through a balanced foreign policy that is not hostile to the West or the East. He has succeeded so far in improving relations with the Gulf states, Egypt and Greece, but he has not yet been able to secure any foreign investments. , specifically from major American wallets, despite the large Turkish financial delegation that recently visited London.
It seems that the American administration has not yet given the green light, but it is about to give the green light to another country for the governor to invest in Egypt after stopping for about a year.
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