The Turkish pound against the dollar has been diving more than 6% since the morning, after the Tayyip Erdogan in new statements again defended its policy of reducing interest rates, despite inflation, which, according to official figures, exceeded 21% on an annual basis and is likely to reach 30%.
In a statement broadcast late last night but videotaped on Saturday, the Turkish president invoked his Islam, which prohibits interest rate, to justify its policy.
“As a Muslim, I will do whatever our religion commands me to do. “God willing, inflation will be reduced when possible.”
Erdogan responded through these statements to the call made collectively by Turkish businessmen at the end of last week, calling on him to take action to address the crisis.
“The political choices that are being implemented have not only created new difficulties for the business world, but also for our fellow citizens,” the statement said. Tusia, the Turkish employers’ organization representing about 85% of Turkish businessmen and major exporters.
“Therefore, it is urgent to assess the damage done to the economy and return to the economic principles that govern the market economy,” Tusia said in a statement issued by its Washington bureau.
Responding to this appeal, Erdogan videotaped the statements that were broadcast last night: “They are complaining about the reduction of interest rates. But do not expect anything else from me “.
From January, the Turkish pound has lost it 57% of its value against the dollar and for the Turks this collapse translates into an unmanageable price spike, while the country is highly dependent on imports, mainly in the field of raw materials and energy.
Commodity prices such as sunflower oil have skyrocketed by 50% in one year.