The controversial economic management of President Recep Tayyip Erdogan has sunk the lira to record lows, something that is exacerbating the persistent inflation in the country and undermining the support bases of the Islamist leader after 19 years at the helm of Turkey. His approval is declining and opposition figures (such as the mayors of Istanbul and Ankara) surpass him in popularity, increasing the chances of a political change in the near future.
That of “Every time he speaks, the bread goes up” could literally be applied to Erdogan. On Wednesday, as he advanced in his speech to the parliamentary group, making clear his intention to “carry through to the end” his fight against high interest rates, the lira lost value. The more the Turkish leader talked and the more he delved into his heterodox theory that high interest rates are the cause of the rise in prices, the more the price of the Turkish currency sank. On Thursday, in a further sign that it has become an institution that limits itself to following the president’s designs, the Central Bank cut interest rates to 15%, further sinking the exchange rate of the lira against the dollar and the euro. and, with this, worsening the prospects for runaway inflation (20% according to official statistics, more than double according to alternative calculations), since Turkish industry and even agriculture must import inputs in foreign currency to be able to produce.
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https://marketresearchtelecast.com/erdogan-on-the-ropes-for-his-heterodox-management-of-the-economy-international/207285/
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