Kerim Rota, the Head of Economic Policies of the Gelecek Party, evaluated the rapid depreciation of the Turkish Lira (TL) on his social media account after the elections.
Rota, who claimed that everything was for the sake of the elections, stated the following in his tweet.
Everything was for choice.
Exchange rates have been suppressed by the CBRT reserve sale, capital controls and verbal intervention for 9 months.
Although the spring is now loosened, it is unclear where a real market equilibrium will occur. Even at this level, companies are prohibited from buying foreign currency, the only seller is the CBRT.
Even if the exchange rates remain at this level, the public funds to be paid to KKM will exceed 200 Billion TL during this period.
An increase in the exchange rate will increase inflation. Since not all of this increase will be reflected in June inflation, wages will again melt in the face of inflation in summer.
Fixed-income citizens will once again pay the price of bad economy management and persistence in the fallacy of “interest cause, inflation result”.
It will not end there, fiscal policy will also come into play. I fear that another blow will soon be struck by price hikes and indirect taxes on fixed incomes.