Erdogan “justifies” the sharp decline of the lira

Turkish President Recep Tayyip Erdogan insists on the need to cut interest rates in order to boost economic growth and create jobs, despite the decline of the Turkish lira to its lowest level against the dollar.
“Turkey has left old policies based on high borrowing rates and a strong currency in the name of declining inflation, and has instead shifted to a new system that prioritizes increasing investments and exports and creating strong job opportunities,” Erdogan was quoted as saying by Bloomberg News Agency on Monday.However, according to experts, Erdogan’s fiscal policy is not feasible to revive the deteriorating lira, and the German “Commerz” bank confirms that the interest rate policy pursued by the Turkish President, in addition to the dismissal of central bank chiefs, are the two most prominent reasons for the suffocating lira crisis.

“We either had to give up investments, manufacturing, growth and jobs, or face a historic challenge to achieve our priorities,” Erdogan said after a ministerial meeting in the capital, Ankara. While most central banks focus on tightening policy because the global recovery is driving up prices, Turkey’s decision to cut 4 percentage points of lending rates since September has rattled markets and frustrated investors who complain that its monetary policy is becoming increasingly volatile and unpredictable. .

Erdogan’s pledge to double down on his recent pressure to get cheaper financing from Turkey’s central bank caused the lira to plummet after Turkish markets closed. The currency fell by 2.1% to 11.4767 against the dollar and was trading at a decrease of 0.9% at 11.3804 lira against the dollar at 07:56 pm in Istanbul.

These were the details of the news Erdogan “justifies” the sharp decline of the lira for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at saudi24news and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.

PREV Saudi Arabia seeing rising interest in credit ratings amid broader investments and economy diversification: Moody’s exec
NEXT Startup of the Week – supply chain platform Omniful aims to boost Saudi Arabia’s e-commerce space

Author Information

I am Joshua Kelly and I focus on breaking news stories and ensuring we (“Al-KhaleejToday.NET”) offer timely reporting on some of the most recent stories released through market wires about “Services” sector. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for Al-KhaleejToday.NET specializing in quicker moving active shares with a short term view on investment opportunities and trends. Address: 838 Emily Drive Hampton, SC 29924, USA Phone: (+1) 803-887-5567 Email: [email protected]