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T Matrix chief market analyst Haitham Al-Jundi did not rule out in an interview with Al-Arabiya that the Turkish lira would experience new record levels, and said: “I am not ruling out its arrival. 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 great 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 governor’s penultimate 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.
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