The well-known media personality, Faisal Al-Qasim, presenter of the “The Opposite Direction” program on the Qatari Al-Jazeera channel, said that the main reason behind the decline in the value of the Turkish lira in the recent period is related to the policy of the Central Bank and the state in reducing the interest rate.
He said in tweets via his Twitter account: “It became very clear: the Turkish lira is true that it is declining rapidly against the dollar, but the main reason and nothing else is the policy of the Central Bank and behind it the Turkish state is to reduce interest. And every month the interest is reduced, the price of the lira falls.” .
He explained that “Turkey could, if it wanted, stop the deterioration in the exchange rate if it stopped reducing interest rates, but it continues.”
He continued, “So there is an economic and financial corrective movement behind which Turkey itself is behind. All talk about the fall in the price of the lira and portraying it as a catastrophe that has befallen Turkey is nonsense.”
At the forefront of news related to Turkey is the follow-up to the decline of the local currency, especially as it comes in light of Turkish President Recep Tayyip Erdogan’s keenness to reduce the interest rate raised by the former Central Bank governor to 19%.
President Erdogan’s statements have contributed to the devaluation of the local currency, among other factors.
The Turkish president’s view is that raising the interest rate is one of the reasons for the high rate of inflation in the country, and the interest rate is an obstacle to investors, because the high interest rate increases production costs.
Turkish President Recep Tayyip Erdogan stressed that his country will emerge victorious from the war of “economic independence” it is waging in the current period.
Another argument that the Turkish president gives is comparing the interest rate in his country with the rest of the G-20 countries, especially those countries that belong to the European Union and America.
In those countries the interest drops to between zero and 1%, and in his country it rises to 19%. According to a report by Al Jazeera Net.
This came in a speech he delivered, Monday, after a meeting of the Turkish government at the Presidential Complex in the capital, Ankara.
In this regard, Erdogan said: “We will emerge victorious from the war of economic independence, as we did in other fields.”
Erdogan clarified that the increase in prices resulting from the appreciation of the exchange rate does not directly affect investment, production and employment, indicating that the competitiveness in the exchange rate leads to an increase in investment, production and employment.
He added that Turkey has sufficient experience in managing financial crises, and that Ankara is determined to seize the opportunities that have been made available during this critical period the world is going through.
“We are determined to do what is right and beneficial for our country by focusing on investment, production, employment and our export-oriented economic policy,” he continued.
And he added: “We will not allow the opportunists who excessively raise the prices of goods under the pretext of a high exchange rate, and we will continue the struggle against them.”
Erdogan welcomed the Turkish Central Bank’s cut in interest rates (from 16 to 15 percent), stressing that his government encourages investment, production and export.
Erdogan explained that the global economy is witnessing dangerous fluctuations in the face of new challenges, especially those caused by the outbreak of the Corona virus.
He pointed out that monetary expansion and negative interest practices in developed countries led to the disruption of the global economy.