As exchange rates keep going up, the actions and steps CBRT takes are staring to become a bit old now. First, they cancel repo tenders, and then they tackle with the foreign currency bank deposits, which all are temporary measures in fact. Today, I intend to focus on other problems.
We can observe that East Mediterranean and Syria become a concern along with US-China Trade Talks and the Brexit which seems as a second priority for the moment.
When I was surfing through international news channels on Tuesday evening, I stumbled upon a great news show hosting political experts. One of them was from the UK and he said, “Ankara is aware that the elites of Europe are concerned by the rising European nationalism. Ankara’s strong stance about the refugees is something to admire”. That is to say, thanks to the measures Ankara took to ensure refugees to stay in Turkey without needing to flee to Europe, European far-right parties weren’t able to come to power ‘yet’, contenting themselves with a coalition.
According to some experts, the only thing that can prevent Europe from derailing again just like it did before the WWII are a set of drastic steps that Turkey is taking. So many people think that deterioration in Turkey’s global perception emerges as the side effect of Ankara’s efforts to keep Turkey whole and safe by taking a strong stance against terrorism, refugee crisis,
Syria and Eastern Mediterranean issues as well as internal challenges…
“When the debt is too high, debtors become bolder…”
If things get worse in foreign politics, Turkey’s internal challenges will get worse simultaneously. So, I strongly suggest everyone to have a plan B ready in case of further deterioration interest-exchange rates and ultimately inflation.
To tell you the truth, any ‘separate’ plan that Turkey will design to overcome the financial bottleneck it currently faces still depends on a desired positive trend in global economy. If tensions between the US and China keep escalate and if the European economy is hit by severe economic problems, it is just inevitable that Turkey will get affected one way or another. Therefore, Turkey must draw up a solid plan using all resources available while keeping a back-up plan ready for the hard times. Let me remind you that, the US increases tariffs on USD 200 billion worth of Chinese products from 10 percent to 25 percent, effective today.
Also, discrepancies between debt load of the G7 countries and their GDP may lead to further unforeseen problems since we all know that when the debt becomes too high, the concerns of the creditors make debtors bolder.