Attention-grabbing analysis from the Financial Times: How is Turkey’s coffers filled?

British newspaper Financial TimesAccording to Turkey, in the period from January to July in 2022, the central bankHe stated that the increase in the ‘net errors and omissions’ item announced by .

It was stated that 24.4 billion dollars of the 36.7 billion dollars debt in the current account deficit was covered in this way, and this is an unusual situation in terms of AKP President Recep Tayyip Erdoğan’s belief that reducing the cost of borrowing reduces inflation.

In the Financial Times analysis, which stated that Erdogan’s unusual interest rate policies caused deep problems in the Turkish economy, it was stated that global investors made a great exit from Turkey in the last ten years.

In the article, in which the FT stated that the TL’s deficit against foreign currency, which has experienced serious depreciation in the last period, was financed with money of uncertain origin, it was asked where the source of this money came from.


In the article, which also includes the analysis of Timothy Ash, the UK-based BlueBay Asset Management analyst, he stated that Turkish banks may be quite happy to accept Russian money, which other countries exclude.

In the FT article, Ash said, “Erdogan has done his best in recent months, with Turkey building closer trade relations with Russia, as well as supplying drones that are crucial to Ukraine’s defense,” he said. made statements.


He also included the analysis of Capital Economics in his Financial Times article.

Capital Economics, “We don’t know in any detail what caused the increase in net errors and omissions. It is due to huge and possibly misrecorded capital flows in Turkey. But in reality, it can reflect anything from gold sales and foreign currency deposits to misreporting of services trading or smuggling. What is going on? It’s hard to know for sure, but it’s clear that this has provided a significant boost to the current account deficit this year and will again shed light on Turkey’s low reserve coverage should these unexplained flows reverse.” said.


Finally, the FT included Erdogan’s assessment on the subject.

Erdogan, “If you notice in our Central Bank, once the reserves started to increase. This, of course, enables us to act comfortably at the point of foreign exchange reserve. In this regard, many friendly countries are currently giving their necessary support,” he said. had used the words.