"It nearly seems like it's a game of "good cop, bad cop" being played out between the Turkish authorities - with President Erdogan on the one hand still making statements regarding his dislike of interest rates and. a very sizeable reaction from the central bank in response to the recent inflationary and geopolitical developments". But it still expects to end its 2.6 trillion euro asset purchase scheme by the end of the year, suggesting that a formal decision on ending quantitative easing will come later. "If you say "inflation is the cause, the rate is the result", you do not know this business, friend", he added.
The lira reacted strongly to the rate rise, initially up 5% in value to 6.0 lira to the United States dollar, later settling up more than 2.7% at 6.15 to the dollar.
The Turkish lira has lost more than 75% of its value against the dollar since January, pushing up the cost of a wide variety of goods.
"We can not allow the use of the tool of exploitation that is interest rates", Erdogan told a meeting in Istanbul on Thursday.
"As of today, I have not seen the central bank fix inflation rates as they promised", Erdogan went on.
Turkey's currency and inflationary troubles are also compounded by the threat of steel and aluminium tariffs from the USA as well as sanctions over the detention of an American evangelical pastor.
Turkish President Tayyip Erdogan has appointed himself chairman of the country's sovereign wealth fund and completely changed its board, naming Finance Minister Berat Albayrak as his deputy, the country's Official Gazette said on Wednesday.Читайте также: HIGHLIGHTS: Seattle Storm Win 2018 WNBA Championship
Erdogan took over as Turkey's first executive president in July with sweeping new powers, including oversight over economic policy and the ability to appoint the central bank governor. "The lira crisis seems to be far from over".
Some analysts predict that the decree on property transactions could have a negative impact on property sales in Turkey, especially by overseas investors. "It's only really going to be a bit problematic if you're repatriating to the country you came from". "Reorganizing the wealth fund is a must", he said.
One of Erdogan's advisors mainly known for his outlandish statements, Yigit Bulut, was removed from the board, while new members included Rifat Hisarciklioglu, the president of the Union of Chambers and Commodity Exchanges of Turkey (TOBB).
Zafer Sonmez, head of Turkey and Africa for Malaysia's government investment vehicle Khazanah Nasional Bhd, was named general manager.
The fund's other assets include the state's minority 49.12-percent shareholding in flag carrier Turkish Airlines, as well as state-owned enterprises such as the PTT Turkish post office.
The fund was created in the wake of an attempted coup in 2016 to help fund infrastructure projects and shore up markets.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.