The government barely holds the dollar until the polls

may 14Less than a month before the elections to be held in Turkey, the fact that the dollar exceeded 20 lire despite all efforts was the biggest handicap of economic management. Due to the increase in foreign exchange and the deepening of the economic crisis, the government’s objective was to control the exchange rate, which brought the election date forward by approximately one month. However, remedies to control dryness are running out. The dollar has risen 7 percent since March 10, when AKP President and Chairman Tayyip Erdogan signed the election decision. Furthermore, since the CBRT restricted foreign exchange transactions by banks, individuals and companies resorted to foreign exchange offices in the Grand Bazaar for foreign exchange transactions, creating the danger of bilateral exchange rates.

THE GAME IS ENDING

For example; While the bank quotes showed 19.40 lira yesterday, the free market dollar registered 20.35 lira yesterday. Now, with less than a month or two to go before the elections, he wonders if the government will be able to advance to the polls without a new currency attack. Economist Prof. Dr. Yalçın Karatepe said: “The suppressed exchange rate accumulates energy, this accumulated energy will be released from somewhere. We will see after the elections, who will come out of the polls will guide the dollar, ”he said.

Murat Kubilay

International finance expert Dr. Murat Kubilay, for his part, said that now it is very difficult to maintain the situation until May 14, saying: “We said that they would press until the first round, but if they reached the final it would make things worse. Second round. However, stability will not be sustained until the elections due to the record foreign trade deficit, the earthquake effect and the perception of investors.

Kubilay said: “If new money does not come from outside with political and commercial concessions, we will see the true result of the one-man regime before the elections. If there is no money, the restrictions will increase; As a result, the economy will stall and the electorate’s perception will deteriorate. The game is about to end. After the holidays, everything becomes clear.

The second round will be hard

teacher. Dr Cem Baslevent

Recalling that the dollar was in single digits 1.5 years ago and that the current exchange rate was not even imagined at that time, Bilgi University faculty member Prof. Dr. Cem Başlevent said: “We can anticipate that foreign exchange reserves will be used and banks will be encouraged to pay high interest rates on TL deposits to avoid shocks before the elections.

teacher. Dr. Karatepe Yalcin

The winner gives the address

Economist Prof. Dr. Yalçın Karatepe stated that the dollar has a great impact on voter behavior, saying: “The demand for foreign exchange is the main factor complicating the work of the government until the elections. Citizens have high expectations that the dollar will rise if the AKP rule continues. A limited increase in power change is expected. “The most fundamental factor in the movement of the exchange rate will be who will come out of the polls,” he said.

2 new movements of the Center to stop the dollar

After the dollar exceeded 20 lira on the free market, the Central Bank (CBRT), which made an extraordinary effort to keep exchange rates under control, increases restrictions on currency transactions. As Bloomberg’s Kerim Karakaya reported, citing sources close to the matter, to ease pressure on the TL, the CBRT imposed a daily amount limit on banks’ foreign exchange purchases in the interbank market.

OPENING SHEAR

While the daily limits were determined on a banking basis, they were associated with the needs of the Currency Protected Deposit (KKM) product. In addition, banks were requested to complete their foreign exchange purchases before 1:00 p.m. and not to purchase foreign exchange on the free market after this time. Daily limits and exchange rate differences applied by expanding banks drive more companies and individual investors to the exchange offices in the Grand Bazaar. While the exchange rate is 19.39 on the interbank market, it appears to be above 20 lira on the Grand Bazaar.