Ankara-Sana
Fatih Yasli, a Turkish economic and political expert, confirmed that the continued decline of the Turkish lira against foreign currencies raises the rate of investment risks for several reasons, the latest of which was the Turkish President Recep Tayyip Erdogan's fabrication of a diplomatic crisis yesterday by expelling the ambassadors of ten countries.
Yeshli, a faculty member at Abant Ezzat Paysal University, told the Russian Sputnik news agency: “The dollar exchange rate will continue to rise against the Turkish lira in the coming period, as inflation rates rise in Turkey,” noting that the reasons for the decline in the exchange rate of the Turkish lira and the increase in investment risks in Turkey This is due to the inclusion of Turkey by the International Monitoring Authority on the gray list of money laundering and terrorist financing, in addition to Erdogan's announcement of his intention to expel the ambassadors of 10 countries against the background of their demand for the release of the Turkish dissident Osman Kavala.
Yasli believed that the decline of the Turkish lira leads to a reduction in labor costs so that the profit opportunities for employers and capital owners increase by reducing wages, but this weakens the purchasing power of workers and employees, pointing to the exacerbation of poverty rates in Turkey as a result of lower interest rates and the rise in the exchange rate of the dollar.
Yasli pointed out that the Turkish government seriously manipulated the currency exchange rate by buying the dollar a day before the Central Bank announced its decision to cut the interest rate and then the exchange rate rose.
Less than two weeks ago, Erdogan dismissed three members of the Monetary Policy Committee of the Turkish Central Bank, amid criticism from the opposition of his interventions. In turn, the bank cut interest rates last Thursday by 200 basis points to 16 percent, in the second decision in this regard within a month.
Kemal Kılıçdaroğlu, leader of the Republican People's Party, the largest opposition party in Turkey, confirmed earlier today that Erdogan is inventing foreign conspiracies to justify the current deteriorating economic situation in the country. And the United States, stressing its insistence on its repressive policies against its opponents, and justifying its decisions by calling on ambassadors and their countries to release opponent Osman Kavala.