Opposition lashes out at Erdoğan as dollar spikes following interest rate cut

[Homajon]

Opposition lashes out at Erdoğan as dollar spikes following interest rate cut

The exchange rate of the US dollar has surpassed 11 against the Turkish lira. The opposition questions the sharp decrease just before the announcement of the policy rate decision.
İstanbul - BIA News Desk

19 November 2021, Friday 09:51

Click to read the article in Turkish

The Central Bank cut its benchmark one-week repo rate by 100 basis points from 16 percent to 15 percent yesterday (November 18).

In making the decision, the bank said it "evaluated the analyses to decompose the impact of demand factors that monetary policy can have an effect, core inflation developments and supply shocks."

With the latest cut, the monetary authority has lowered the key rate by 400 basis points since September.

The exchange rate of the US dollar jumped to over 11 against the Turkish lira, hitting another all-time record. The dollar had surpassed the 10-lira threshold just a week ago.

Opposition politicians slammed Erdoğan on Twitter amid the dollar's sharp rise.

Main opposition Republican People's Party (CHP) Chair Kemal Kılıçdaroğlu wrote, "Erdoğan, stop now" and once again called for a snap election.

Faik Öztrak, the spokesperson of the CHP, pointed out that the exchange rate of the dollar briefly declined just before the Central Bank's announcement of the policy rate and then inreased sharply. "Some people laughed all the way to the bank," he wrote.

It was a "scandal" that the Central Bank made the announcement five minutes later than scheduled, he noted.

İYİ (Good) Party Chair Meral Akşener wrote, "The cost of your stubbornnes in doing the wrong thing cost 3,000 lira for every single individual of our nation in one hour. Are you happy, Mr. Erdoğan?

"If you intentionally do this, it is outright treason. If it is the result of your incompetence, what needs to be done is clear: Elections must be held as soon as possible ... Enough is enough."

Peoples' Democratic Party (HDP) deputy Garo Paylan called on the government to "either fulfill your responsibility or resign."

Democracy and Progress (DEVA) Party Chair Ali Babacan, who served as the economy minister in AKP governments, said Erdoğan was responsible for the economic problems of the country.

Opposition lashes out at ErdoÄan as dollar spikes following interest rate cut

The exchange rate of the US dollar has surpassed 11 against the Turkish lira. The opposition questions the sharp decrease just before the announcement of the policy rate decision.

m.bianet.org

All the misery is solely Erdogans fault!!!

 

[Imran Khan]

it seems everywhere dollar is out of control

 

[Muhammed45]

it seems everywhere dollar is out of control

A toxic currency sir. People have envalued this valueless piece of Paper which is printed out of thin air. No actual gold is backing it. So, anyone that makes it the national reserve currency suffers endless inflation which is in fact the inflation of dollar itself that is being injected into their economy.

 

[MMM-E]

Erdogan saved our $320 billion from blood sucker international interest lobby between 2003 and 2013



before ERDOGAN every year almost 50% of GDP gone to international interest lobby

around 50% of total budget expenditures gone to blood sucker international interest lobby
In 2001, 47.2% of total budget expenditures were interest expenditures

but ERDOGAN lowered interest rates from 24% to 4,9% between 2003 and 2013 .. and for the first time, the ratio of interest expenditures to budget expenditures fell below 10%



but interest rates have risen to 16% from 4,9% between 2013 and 2021

because of since 2013 Turkey and Turkish Economy under attack by the US and their terrorists PKK , ISIS , FETO

-- 2013 Gezi Park rebellion
-- 2013 FETO's judical coup attemp
-- 2015 PKK's big rebellion in 22 cities
-- 2015-17 ISIS's 14 major terror attacks in Turkey
-- 2016 FETO's military coup attempt
-- 2017-2018 TRUMP's attack on Turkish Economy

 

[Foinikas]

because of since 2013 Turkey and Turkish Economy under attack by the US and their terrorists PKK , ISIS , FETO

-- 2013 Gezi Park rebellion
-- 2013 FETO's judical coup attemp
-- 2015 PKK's big rebellion in 22 cities
-- 2015-17 ISIS's 14 major terror attacks in Turkey
-- 2016 FETO's military coup attempt
-- 2017-2018 TRUMP's attack on Turkish Economy

Fictional Erdogan Terrorist Organization

Can you remind us how many billions did Erdy supposedly give to muslim countries as charity in 10 years? What was it? 100 billion? 300 billion?

 

[Homajon]

Turkey defies warnings and cuts interest rates

Lira tumbles as economists fret that loose monetary policy will spur inflation

The lira has dropped 30% against the dollar in 2021 © Reuters

November 18, 2021 6:25 pm by Adam Samson in London and Laura Pitel in Ankara

Turkey slashed interest rates on Thursday, sending the lira tumbling as much as 6 per cent to a new record low, heightening concerns President Recep Tayyip Erdogan’s fixation on low borrowing costs will worsen already acute inflation.

The central bank cut its one-week repo rate 1 percentage point to 15 per cent, marking the third straight reduction in interest rates under governor Sahap Kavcioglu from 19 per cent at the start of September. The bank said many factors behind surging consumer prices were “beyond monetary policy’s control” and that it would “consider” ending its cycle of rate cuts this December.

The lira’s decline had eased to 3 per cent by the end of the London trading day. However, the currency has fallen more than 30 per cent this year — on a par with Turkey’s currency crisis in 2018 — as economists fret that low interest rates will worsen an inflation spiral, with consumer price growth having reached an annual pace of almost 20 per cent in October.

“It’s mystifying why they would do this,” said Paul McNamara, an emerging market investor at GAM in London. He said some aspects of Turkey’s economy looked encouraging as the country recovered from the pandemic. “The only driver for a weak lira is the policy outlook,” he said.

Turkey’s central bank has been under intense pressure from Erdogan to loosen monetary policy despite blistering inflation. Lower rates — and a weaker currency — tend to worsen inflation because it increases the price of imported goods, creating a vicious cycle.

Erdogan, who holds the unorthodox view that high interest rates cause, rather than tame, inflation, on Wednesday renewed his pledge to free Turkey from the “scourge” of high interest rates.

“I’m sorry to our friends [from the ruling party] who defend [high] interest but I cannot and will not walk the same path as them,” he said.

The central bank on Thursday laid blame for the elevated inflation on “transitory effects of supply-side factors” including high global food and energy prices, which it expected to last into the first half of next year.

It said many advanced economies were continuing to pursue monetary policy stimulus, partially on expectations that the surge in global inflation would prove to be fleeting in the medium to long term.

But Turkey’s loosening of monetary policy leaves the country as an outlier at a time when many other emerging markets are raising rates. Both South Africa and Hungary announced rate rises on Thursday. The US Federal Reserve, the world’s most influential central bank, is also reducing its stimulus measures, something that has placed emerging markets under more pressure to increase interest rates to attract investment.

Analysts at Barclays said Turkey had entered “uncharted waters”, calling the recent rate reductions “counter-productive”.

Erdogan has faced mounting calls from the opposition and the Turkish business community to set aside his obsession with rate cuts in order to tame inflation and stabilise the currency, whose slide has been eroding standards of living.

“Now STOP, Erdogan!” Kemal Kilicdaroglu, the leader of the country’s largest opposition party, said in a tweet in response to Thursday’s decision and repeated his demand for Turkey to go to elections.

The rightwing IYI party, which has been enjoying growing support in the polls, accused Erdogan of “bankrupting” the country.

“The reasons that are causing a currency crisis right now are not macroeconomic per se. It’s the decision-making system that gives Erdogan endless authority,” said Umit Ozlale, one of the party’s vice-presidents. “Whatever he wants is done. That’s why we’re in this crisis. This is a decision-making crisis.”

Jittery markets had been further unnerved by an item published overnight in the country’s official gazette relating to foreign currency transactions at Turkish bureaux de change.

Turkish officials dismissed frenzied speculation on social media that the move was a sign of impending capital controls. They said the directive was a small technical change to a previous requirement for citizens to show identification at foreign exchange offices, arguing that it was actually a liberalising measure that lifted the minimum transaction amount for such a requirement to $100.

Turkey defies warnings and cuts interest rates

Lira tumbles as economists fret that loose monetary policy will spur inflation

www.ft.com

Only Erdogan is responsible for this immense suffering, nobody else!!!