An interview…

An interview…

– Hello, we are calling you from the X newspaper.

– Hello.

– We would appreciate it if you could take a minute of your time to answer some questions. Now that the elections are over, do you think Turkey will be able to overcome this crisis?

– What crisis do you refer to?

– Isn’t Turkey in crisis right now?

– If an economy continues to grow, it cannot be in crisis. Turkish economy grows in high inflation while struggling with financial bottlenecks.

– So what to do to get out of this circle?

– Gradually normalise the policies.

– What happens if it isn’t done?

– Then we will fall into a real economic crisis.

– Do you think the Government will allow a gradual return to the free market economy?

– That’s what needs to be done, for sure. But I cannot know what the Government will decide to do.

– There are rumours that the Government might replace its economy team.

– It is the current economic model that needs replacing. Otherwise, new appointments will not do any good.

– Exchange rates keep rising. What is your opinion about that?

– The central bank reserves are at their lowest level since February 2002. The CBRT is trying to ease the tension a bit.

– What about interest rates?

– Loan rates are already around 50-60% while deposit interest rates continue to increase. My guess is that the Government will keep the policy rates intact.

– Do you expect any change before the local elections?

– Well, this should change, sooner or later. The market interest rates, exchange rates and inflation will gradually rise, eventually stopping at a higher level than expected.

– Will exchange rates go further up?

– Everyone has reconciled with the fact that 1 USD = 25 TRY. A gradual normalisation is required to prevent that rate from hitting higher levels.

– What if normalisation doesn’t happen?

– As I said earlier, a real crisis.

– Thank you.