Turkish President Recep Tayyip Erdogan, who was re-elected on Sunday for a five-year term, pledged billions of dollars during the election campaign and pumped in tens of billions more to float the Turkish lira ahead of the elections. the truth may be approaching the Turkish economy,” Capital Economics said in a statement.
Thanks to cheap labor and an efficient banking system, the Turkish economy is suffering from a problem caused by the executive branch itself, which few other countries face.
To fight his battle well, he changed central bank governors, and the Turkish lira continued its fall on Tuesday morning, hitting 21.69 per euro.
Its price was $20.44. Experts have proposed two solutions: raise interest rates or let the lira fall as monetary support measures have removed the advantage of low interest rates in a manufacturing-dominated economy.
They believe that “a return to a floating exchange rate regime will be necessary to restore the competitiveness of Turkish exports.”
In parallel, Turkey must finance the reconstruction of the provinces affected by the February 6 earthquake, which killed 50,000 people and caused damage estimated at more than one hundred billion dollars.
