It should be noted that Erdogan obtained 52% of the votes compared to 48% of his rivalthe social democrat Kemal Kiliçdaroglu.
In Türkiye inflation is close to 45%and in his speech after the victory, Erdogan said that reducing it will be his main objective.
The president recalled that his policy to deal with this problem was to gradually reduce interest rates, a theory contrary to that of most economists, and that the price of money is currently at 8.5%.
However, there are economists who have a more pessimistic view of the economic outlook.
“I don’t expect an immediate reaction. The elections are over, everyone saw the result, the uncertainty is over and now they will take a position accordingly. But with the continuation of the previous policies, the lira will continue to lose value“, the economist Mustafa Sonmez told EFE.
The Turkish currency has lost 77% of its value against the dollar in the last five years.
“The exchange rate of the lira against the dollar, which has registered a gradual but slow and uneventful drop since last autumn, remains artificially stable, through interventions by the Central Bank, such as the sale of foreign currency and various mechanisms outside the market,” recalled the Diken newspaper.
For about a monththe official exchange rate of the Central Bank no longer corresponds to the one offered by private money changers, and which now appears even on the pages of financial inquiries as “exchange of the Grand Bazaar”alluding to the historic business center of Istanbul.
Source: Ambito
