Everyone seems real confused as we the final day of the trading week begins. Although speculations on the Turkish bank trial in the US, which ended a few months ago, are constantly being refuted, the fact that investors seem currently reluctant to engage in any investment does not go unnoticed.
Here’s what I have understood from yesterday’s heavy message and call traffic:
- Turkey’s “high growth” policy, implemented without giving priority to the resource efficiency, is officially ended
- Creditors now want to know more than ever how and where the resources are being used
- The latest decisions regarding the Exchange Regime caused Turkey’s perception in the West to further deteriorate.
- Foreign Funds and Foreign Financial Institutions no longer hesitate to openly express the names of the people whom they want to see administrating the Turkish economy
- Central Bank is likely to face further pressure to increase the cost of funding to 20%
- Investors and Financial Institutions openly declare that they find the economy administration quite incapable of handling the economy.
On the other hand, President Erdogan’s “Current exchange rates do not reflect the economic reality in Turkey” statement does not sound totally wrong; because, the gap between the Turkish reality and Turkey’s perception in the world keeps widening. To be more precise:
Turkey is home to strong and hard-working people. However, it has sadly gained an undesired recognition in the foreign press, especially because of the news regarding Young Turks blowing their family fortunes. Turkey is home to compassionate people who spare no effort to help the helpless. Sadly, foreign media is rather focused on releasing news on animal cruelty and abuse. Turkey is home to warm and mostly sweet-tempered people. However, they look like quarrelsome and disagreeable people in the foreign media. Turkey has been home to Rumi, Yunus Emre, Atatürk, people who have managed to combine knowledge with humbleness. But, sadly, it is being perceived as the home of arrogant and contemptuous people.
No one is to blame for this; because, perception is stronger than reality. We are all to blame. And to achieve stability again, all we need to do is go back to the basics…