Lira crisis may split up Turkey's biggest political parties

Analytics 17:01 24.11.2021

The sharp inflation caused by slump of the Turkish lira in the last month in Turkey reached its peak on November 23 with the sudden depreciation of the lira by about 20 percent. This caused serious tensions in the country and led to people taking to the streets.

The reason for the depreciation of the lira is in fact President Recep Tayyip Erdogan's support for a plan to reduce interest rates in order to strengthen the economy. According to the report, after the previous decision, the Turkish lira stood slightly above 12 lira against the dollar on Tuesday.

In such a situation, the main opposition called on the masses to protest against the government, giving support to the public discontent. Besides that, the main opposition has called for early presidential elections.

Other sources say that the sharp devaluation in Turkey is aimed at strengthening the economy by accelerating exports. It should be noted that after supporting Azerbaijan in the Karabakh issue, the West and its allies began to launch propaganda such as a boycott of Turkish goods. In this case, the demand for Turkish goods fell significantly. At present, the peak of the depreciation of the lira, on the other hand, allows it to increase its export capacity. However, it seems that in response to the resistance of the government, which does not want to settle accounts with the West, the country's currency is devalued. That is why the economic crisis in the country has seriously shaken the confidence of many investors to invest in the country.

In this case, in fact, instead of inviting the people to protest, the opposition could put forward an initiative in support of the state. But the question is, what will be the consequences for Turkey of the ongoing processes? Also, if the lira crisis lasts for a long time, how real is it that early elections will take place?

Turkish political expert Engin Ozer told EDNews.net about the process.

Engin Ozer - AzerNews.az

"As you know, all these things occurred after the change of leadership of the Central Bank in Turkey. Until then, prices and currency purchases in Turkey were carried out by the decision of the Central Bank and did not carry out any state order in this regard. However, the value of the national currency began to fall after President Erdogan abolished the system and ordered interest rates to be lowered.

In addition, I can say that foreign investment in Turkey has been suspended since 2016, and since 2017 there has been a sharp decline in the value of the lira. Investments in the country are made only by Azerbaijan's SOCAR, and there are almost no investors from countries such as Germany and France.

Yes, despite the fact that the economic downturn in the country is associated with a pandemic, however, 80/100 of it depends on the decisions of the president. All this has happened because the head of state has recently separated from the West and pursued a policy of turning to Eurasia.

Another Turkish political analyst, Goktug Calishgan, also commented on the economic situation in the country. He linked the process to low interest rates and distrust of the lira in the country.

"After the reduction of interest rates by the decision of the President, a group of investors in the country began to lean more on the euro and the dollar. Therefore, the demand for lira has dropped significantly. Today, the dollar is around 12 pounds, and there is still a chance to fall. But time will tell what will happen next. "

Further to his comments, Engin Ozer also touched on the outcome of the process if the lira continues to fall.

"I can say unequivocally that the result is early elections. No matter how close the ruling AKP and MHP are in Turkey, there have been some signals in recent days that the MHP wants to leave the AKP. I think in the face of the concerns of the people, it will not be possible for the Devlet Bahcheli to sit next to the government, and therefore Turkey will have to call early elections in 2022."

Elnur Enveroglu

Azerbaijan takes measures to turn Khankandi into safe city - VİDEO

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