Erdogan says he hopes the Turkish lira will settle soon | Business and Economic Affairs

The Turkish president has vowed to continue his interest rate reduction program even though the Turkish currency has fallen sharply.

Turkish President Recep Tayyip Erdogan has said he expects foreign exchange reserves and inflation to stabilize soon as he repeats his actions against rising interest rates due to the sharp decline in the lira.

The lira lost about 30 percent last month in sales driven by the reduction in interest rates that Erdogan demanded, but economists and opposition politicians say they are not concerned about rising inflation.

“God willing, we will soon put an end to all inflation and inflation,” Erdogan told people in eastern Siirt.

“Tayyip Erdogan said the low interest rate yesterday, he said the low interest rate today and the low interest rate tomorrow,” the president said. “I will not compromise on this because interest rates are a factor that makes the rich richer, and the poorer the poorest.”

The currency touched a 14-day low intra-day low on Tuesday and recorded near Friday, at 13.7485. It is a relatively low investment in the coming markets this year having lost 45 percent of its value.

Inflation jumped three-quarters of 21.3 percent last month, leaving Turkish real prices at worst, a red flag for fleeing refugees and Turkish rescuers who flocked to strong currencies to protect their assets.

While critics want early elections and a change in policy, Erdogan has reiterated in recent weeks that lowering prices is needed to boost exports, debt, employment and economic growth.

Under pressure from the president, the central bank cut its prices by 400 to 15 percent and is expected to ease the downturn this month.

“We will always be available to producers and employers with low interest rates. We have started to put in place measures to protect workers from inflation, “Erdogan said.

He also noted that foreign trade unions, as well as “greedy” businesses that keep more goods than they need, and others that cause inflation.

In another incident in the southern city of Mersin, where troops demanded Erdogan’s resignation, CHP chief executive Kemal Kilicdaroglu said the new government would waive full interest on loans owed to farmers and small businesses.

“He should not resign, we will fire him,” he said of the by-elections held in mid-2023.