Turkish markets absorb interest rate "rate"

Contrary to the expectations of the Turkish lira and the reduction of the interest rate, the price of the Turkish currency increased on Thursday and Friday, registering 5.6676 lire against a dollar to buy and 5.6890 respectively, while the market opened Thursday at 5,717 lire, before the central bank takes a decision to reduce the interest rate from 24 to 19.75%.

Firas Shaabu, a finance professor at Pakchak Shahir University in Istanbul, said that Thursday's interest rate cuts would not be the only ones. There are other reductions, perhaps even tighter, after measuring market acceptance and Turkey's third quarter results, especially for the tourism and export sectors .

It highlights the additional effects of political tensions, particularly between the United States and Turkey after the import of Russian missiles and the allusions to US sanctions on Turkey, and perhaps even Europe for gas exploration in the eastern Mediterranean.

It reveals that an economic policy must be announced by Turkey, along with the reduction of the interest rate so as not to harm the read and the prices of goods and products, and therefore the standard of living of Turks.

These include reducing the burden of external debt, increasing public spending on new investment projects outside Istanbul and, most importantly, surprises on the level of real estate investments as well as because it is a vital sector and its decline was a major reason for the economic recession.

For its part, the Turkish badyst Youssef Kotaboglu expects the exchange rate to increase to 6 lire against the dollar in the coming days. He explained to the "new Arab" that what we will see on the markets and in the Turkish currency in particular, in the short term, will be a natural reaction resulting from the withdrawal of funds from the coffers of banks, invested by rising interest rates, precious metals and currencies, before the situation is clear and used in productive sectors and service investment.

The Turkish badyst added that the interest rate reduction policy is a request from the Turkish government and President Recep Tayyip Erdogan, and a deliberate deadline, before a rate cut in the US federal government is anticipated. This is an important moment in the opinion of the writer Oklu, so as not to escape the hot money from Turkey.

Fluctuation in the exchange rate should be limited ", due to the effects of 25% growth in tourism and 19% increase in exports, as well as the stimulus campaign to increase and increase direct investment after Adoption of exceptional laws on nationality, Billion dollars, and thus will strengthen the value of the pound and lead to price stability The exchange rate is likely to recover early next year to the maximum .

According to data from the Federation of Chambers and Scholarships, the number of foreign companies established in Turkey during the first six months of this year increased by 6.86% over the same period last year. Turkey's exports grew 5 percent to $ 76.6 billion in the first five months of 2019, according to Turkish Vice President Fouad Awqtay.