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An economic report on the performance of the Turkish economy shows that "despite the great dominance of Turkish President Recep Tayyip Erdogan on political life, the deterioration of the country's economic situation poses a major threat to his current authority . "
Economic decisions that worried global markets, including the abolition of the governor's mandate from the Prime Minister's Central Bank for 5 years, and according to a new presidential decree, Erdogan added the right to appoint the governor from the Central Bank and its deputies Politicizing the Turkish bank, which was independent in the past.
Erdogan also named his country's brother-in-law finance minister, who announced in remarks last week that speculation about the independence of decision-making mechanisms at the central bank was unacceptable. Macroeconomic Indicators Data from the Central Bank of Turkey (CBK) showed last week that the current account deficit rose from $ 5.45 billion in May to $ 5.89 billion in April, which had a negative impact on Turkish badets. At the lowest level of its history, on Thursday To reach the level of 4.9743 read, to become the currencies of the worst-performing market in terms of performance
The yield of Turkish Treasury bonds jumped to the highest level in its history , recording 19.07% last week.
Although it is now up 0.3% at 89.853,000 points, it has lost 9,000 points since the beginning of last week.
The report noted that these rapid economic events have led to increased concern Investors have on the situation of the Turkish economy after Erdogan has forecast lower interest rates.
Investors are afraid to become Erdogan has a greater role in monetary and economic policy in the new presidential system in the country, and after the appointment of his son-in-law as finance minister. According to international agencies, notably "Bloomberg", Turkey has become attractive for investments under Erdogan's presidency, adding that it gave investors every reason to withdraw from the market.
According to the Royal Institute of International Affairs of Great Britain, "Chatham House" The Turkish State, under Erdogan's new presidential term, progressively advances toward an acute economic crisis
The question of the effectiveness of Erdogan's foundry in appeasing turbulent financial markets and foreign investors arises. Achieving short-term growth at the expense of economic stability "Turkey must now stop raising its interest rates to control inflation in the Turkish economy, the current situation requires the Easing financial constraints, adopting large-scale infrastructure projects and creating ways to support the read. " This has decreased by about 20% since the beginning of this year. "
According to the report," Erdogan seems to be unhappy to put the Turkish economy, which shows the need for comprehensive reform, to catch up with the developed economies of the world that rely on an infrastructure strong, Financial market flows, rather than rely on private investment projects and exports. "
" Due to Erdogan's policies, foreign currency debt to the corporate sector climbed to $ 328 billion by the end of 2017. Despite its reduction, the situation remains worrisome. [1969002] Some large Turkish companies were forced to negotiate with bondholders to restructure external debt because of the economic burden imposed by the continued collapse of the lira. A huge echo in the Turkish economy and a panic As well as the confidence of the global financial markets in the capacity of the Turkish economy, leading to a crisis in the Turkish economic system through a long-term recession.
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