After the collapse of the read … Erdogan urges the Turks to buy it!

Turkish President Recep Tayyip Erdogan said on Wednesday, according to what was reported by “Reuters” news agency, that recent fluctuations in financial markets are not consistent with the realities of the Turkish economy and urged foreign investors to not to lose confidence in Turkey.

In a speech at a meeting of his party, the ruling Justice and Development Party, Erdogan said “Turks should turn their currencies and gold into pound-denominated financial instruments.”

The lire have plunged since the surprise decision taken over the weekend to replace the central bank governor and replace him with a critic of monetary tightening policies.

The lira saw its lowest rate since mid-December, a drop that has raised expectations that the central bank would raise interest rates from its current level of 17% next week.

The lira price on Tuesday was 7.68 against the dollar, compared to 7.7440 at Monday’s close. The currency had registered 7.7840 pounds in the previous session, continuing losses that spanned more than two weeks.

T Matrix chief market analyst Haitham Al-Jundi did not rule out in an interview with Al-Arabiya on Tuesday that the Turkish lira would hit new record lows, and said: “I am not ruling out its arrived at 10 pounds to the dollar. “

The soldier attributed his expectations to “the exit of important investment flows expected from Turkey with the depletion of reserves, and therefore the priority of dealing with inflation cannot be sacrificed”.

He said Turkey’s reserves collapsed to a real net worth of no more than $ 11 billion, referring to what happened last year, in terms of spending $ 100 billion to make in the face of the crisis.

These estimates also come in light of the decline in confidence with the dismissal of Turkish President Recep Tayyip Erdogan, the third central bank governor in less than two years.

Al-Jundi explained that what makes the crisis worse is that it comes at a time when emerging markets are under severe pressure, with rising US bond yields.

He felt that the departure of the governor before the current one, Naji Iqbal, is a loss that adds a new problem to the existing challenges, including the problems of depleted Turkish reserves and the pressure on the lira.

He said the Turkish currency was better off during the pre-last governor’s era and therefore Turkish President Recep Tayyip Erdogan’s decision always gave political priority to decisions, leaving the door open for a more serious crisis than what happened in 2012.

He described the Turkish economy as being very dependent on domestic demand, and therefore Turkey will need fiscal policies that cover the deficit and tackle the currency crisis and the crisis of high import costs.

He added that the 1.5% growth rate last year was good, but the Turkish president wants more, to achieve political gains at the expense of the currency and the economy.