The Turkish Lira, which is under pressure due to the low interest rate practice despite high inflation, high current account deficit and low reserves, continues to depreciate against the dollar.
CHP Istanbul Deputy Özgür Karabat, from his social media account ‘Operation to devalue Turkish Lira’ He published a series of articles entitled
Pointing out that TL will weaken further towards the end of the year, Karabat said, “In the coming months, inflation will be lower due to the base effect. But AKP creates a perception as if the cost will end. AKP preferred the monetary expansion process. It wants expenditures to increase even more” said.
“REAL LIFE EXPENSES WILL CONTINUE INCREASING”
Karabat continued:
“Monetary expansions in places where production dynamics do not occur and investments do not increase continue to increase inflation. AKP knows this and relies on the base effect. It is obvious how reliable the data of TUIK are.
After all, low inflation on paper, but in reality doomed to a high cost! So, where is the Turkish lira being thrown? US and European Union central banks will continue to increase interest rates. AKP sees this as an opportunity.
The current account deficit may reach 60 billion dollars at the end of the year, and the AKP wants to make the TL worthless and obtain more foreign currency in exports and hot money to close it. Although he calls it “competitive exchange”, it sells the country’s labor and resources for nothing.
Soon, credit taps, especially housing, will be opened more. This is one of the pre-election plans. The annual growth rate will increase as expenditures increase. That’s why the OECD and the European Bank for Reconstruction and Development (EBRD) increased their 2022 growth forecasts for Turkey.
Due to the recession and loss of parity, serious losses began in Turkey’s annual export of 125 billion dollars to Europe. In order to turn to alternative countries, cheap TL will be marketed in the short term. These are all AKP’s moves to save the day.
After all, behind Erdogan’s signaling of the new year for recovery, there is inflation, which is controlled on paper and decreased by the base effect, and export revenues that will increase with the weak TL. But the real cost of living for the citizens will continue to increase.
In this period of increasing economic fragility, AKP continues to transfer wealth by making its choice in favor of capital owners as usual. The state’s interest payments have already passed the main debt.
We need to stop this trend as soon as possible!”
OPERATION TO DEVALUATE THE TURKISH LIRA STARTED
1) A new phase has been entered in the economic model of the AKP, which is called the liraization strategy, which is actually a dollar and interest project.
Towards the end of the year, TL will be weakened even more.
Citizens will suffer more poverty.— Özgür KARABAT (@OzgurKarabatCHP) September 28, 2022
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