Erdogan expresses suspicion of manipulation after the lira crash

by time news

The almost all-powerful President Erdogan also has very clear ideas about a correct monetary policy.
Image: dpa

The Turkish lira has lost 45 percent of its value since the beginning of the year. The Turkish president senses manipulation. Now he has commissioned an investigation to a committee that reports to him.

NAfter the repeated losses of the Turkish lira on the foreign exchange markets, President Recep Tayyip Erdogan orders an investigation into exchange rate manipulation. The official Anadolu news agency reported on Saturday that he had commissioned a supervisory body subordinate to him to investigate. The auditors are supposed to identify institutions that have bought foreign currencies on a large scale and investigate whether the forex trading has been manipulated.

The lira has depreciated by around 45 percent since the beginning of the year. The downward slide had accelerated in the past two weeks. After a speech by Erdogan, in which he defended the rate cut by the central bank to 15 percent, the lira had hit a record low against the dollar. At times, up to 13.45 lira were paid in the markets for one dollar.

Despite an inflation rate of almost 20 percent, Erdogan has repeatedly put pressure on the central bank by demanding interest rate cuts. He had said he would not allow the population to be crushed by high interest rates.

Economists in Turkey also criticize the interest rate cuts and instead call for interest rate increases to counteract the trend. Companies are warning of economic difficulties caused by the collapse of the lira, which is making imports significantly more expensive and thus fueling inflation. This development is particularly affecting consumers with low incomes.

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