Turkey’s new constitutional political regime, “The Presidential Government System,” came into effect on July 9. The amendments approved in the 2017 referendum started to be implemented.
Forecasts predict that monthly inflation in June will come in between 1.3 and 1.4 percent. If those forecasts materialize, the annual inflation rate will rise to 14 percent from 12 percent.
It is easy to produce conspiracy theories on the U.S. dollar and interest rates. If you say: “All these are the works of foreign powers and those who are jealous of us,” someone who has no idea about the balance of payments may buy this story. But it is difficult to write such a story on potatoes and onions.
For some time, people in the finance sector have been widely debating the future appointments to the economic management team that should restore confidence after the elections.
Today, we will read statements from politicians talking about Turkey’s “7 percent GDP growth record,” which is highest among G-20 and OECD member states.
It would be wise to hang the following quote by Josiah Charles Stamp at the entrance of the Turkish Central Bank in Ankara: “It is easy to dodge our responsibilities, but we can’t dodge the consequences of our responsibilities.”
The increase in the exchange rates in the last five months has reached 20 percent, half of it actualizing in May.
In markets in the Middle East, the seller does not put a price tag on his goods but sets the price by looking at the outfit, attitude, appetite and purchasing power of the potential buyer.
May 23 was not an “extraordinary” day that saw a move create an exchange rate spiral in Turkey.