Economist Durmuş: If Erdoğan wins, inflation will increase even more

img
ANKARA - Pointing out that it is not possible to achieve positive developments in the economy without rebuilding democracy, economist Mustafa Durmuş warned: "If Erdogan wins, inflation will increase even more."
 
After the Presidential and General Elections on May 14, the Credit Risk Premium (CDS) increased in foreign currency and the uncertainty created decreases in the stock market. The Central Bank continues to intervene in the market by reducing the foreign exchange purchase limit and flexible account limit of the banks in order to reduce the foreign exchange demand; however, one day later, the decision to limit the cash advance limit from the credit card was abandoned. While going to the second round of the elections, 28 May, on 14 May, fluctuations in the stock market and exchange rates continue. Economy-Politician Professor Doctor Mustafa Durmuş evaluated the developments in the economy after the elections were held in the second round.
 
'MARKETS ARE WAITING FOR MAY 28'
 
Stating that there was an expectation in the markets before the elections and the CDS decreased accordingly, Durmuş said: “Turkey's foreign exchange system affects borrowing rates and borrowing interest. The fact that it fell was a pleasing situation both for the markets and for the economy. As the exchange rate is suppressed, harsher effects on it may occur in reverse. The fact that CDS went up to 700s after the May 14 elections was also an indication of the upheaval in the market. It can be evaluated as a result of the realization of expectations. Dollar and Euro are trending upwards. Under normal circumstances, those macro-prudential measures would go much higher were it not for some measures taken by the government by squeezing the banks. The markets are nervously awaiting the results of the elections this May 28."
 
THE RESULTS OF ECONOMIC POLICIES
 
Stating that if Erdoğan wins in the second round elections, the Presidential Government System will continue and the economic policies of the government are clear, Durmuş said: “We have seen the results of the economic policies that have been carried out for a while, especially the interest policy implementations. There is very high inflation, high exchange rate and instability in the market. In order to keep the exchange rate, they invented something called currency protected deposit. This has actually turned into a form of transferring wealth to the wealthy and making the rich more prosperous.”
 
'IF ERDOĞAN WINS, INFLATION WILL INCREASE FURTHER'
 
Underlining that if Erdoğan wins the election, inflation will increase further, Durmuş said: “Because Erdoğan will think that these policies are valid for his point of view, that they are accepted by the public, and he will continue these policies. If Erdogan wins in the second round, the economic policies implemented since 2017 will continue. The negative effects in the economy will continue to increase and deepen, and it will be inevitable for the exchange rate to go up. Meanwhile, short-term external debts amount to $203 billion. The fact that the foreign exchange reserves are actually above minus 60 billion dollars, seems to expose Turkey to a very serious balance of payments crisis or to a foreign currency crisis.
 
 
 

View More Articles

24/05/2023
15:04 12 musicians detained in Izmir
15:00 The trustee sold the town hall
14:15 Şenyaşar family: The judiciary that does not take account of injustice is also guilty
14:02 Villagers threatened to vote for Erdogan by governor and soldiers
13:40 After the election, the water of the village cut off
13:31 Journalist Şahinli: We will insist on journalism despite all pressures
12:37 Child sexual assault in Bismil State Hospital
12:30 PADÊ: The Shengal and Makhmur attacks are planned, we will not pass
10:59 Lawyer Kertiş: Isolation is a social issue, not an individual issue
10:27 15 people detained in Mardin, Manisa and Şırnak
10:19 Criminal complaint from Amed Bar Association against AKP member Zehir
23/05/2023
18:45 MA Concessionaire Çelik detained
16:26 Nearly 30 people detained in Tekirdağ-based investigation
14:54 13 people detained in Mardîn
14:44 Restraining order in the file of journalist Akyüz
14:36 24 detentions in Mersin-based operation
12:59 Lawyers of Öcalan submit new application for a visit in İmralı
12:16 Makhmur rulers: The government should abandon the blockade and listen to the people
12:05 Prison demand for Kurdish politician Selma Irmak
11:57 Kurdish forbidden to Kurds, free to AKP!
11:04 Kalkans been watching their children's path for 30 years
10:40 Injections not given to seriously ill prisoner Ayık
09:44 Ma Music Coordinator Kanîwar detained
09:43 Drone attack on a house in Shengal
09:43 Journalist Delal Akyüz detained
09:42 From Kılıçdaroğlu to Erdoğan: Assembler and fraudster
09:20 House raids in many cities
22/05/2023
16:02 Broadcast ban on child rape investigation
15:42 Demand for arrest for young people who performed halay dance
15:32 Amed Bar Association: Soylu's statement threatens a new investigation
15:10 Bismil Municipality Co-Mayor Gülşen Özer sentenced to 15 years
13:24 Ankara-based operation: 19 prsoners in 5 cities
13:23 Dollar breaks all-time record
13:10 The tomb of Jîna Emini destroyed again
13:07 Non-prosecution of the criminal complaint of dengbêj Axin Biro, who was beaten in prison
12:38 A handless patient held in a solitary cell
12:17 Otlu: We will take our word against misogynistic policies
11:44 Economist Durmuş: If Erdoğan wins, inflation will increase even more
20/05/2023
15:09 Makhmur People's Council: We will not surrender our will
15:03 Prisoner released at the age of 52, when he detained at the age of 22
14:50 Detention of Saturday Mothers in Galatasaray Square
14:48 3 people executed in Iran, public protests
14:44 Military torture on prisoner in hospital
14:16 Kırtay's last word: Take care of ill prisoners
10:53 The effects of the earthquake continue in Hatay
10:27 Voting process started in abroad and customs
10:14 93 prisoners lost their lives in the last 17 months
09:39 Iraqi army wants to close the area around Makhmur Camp
19/05/2023
16:19 Public welcome to Aktaş, who released after 30 years
16:16 Demirtaş called voters: Stand up and change!