Recep Tayyip Erdogan's goal of preventing the monetary crisis with the early elections he announced for June 24, a year earlier than planned, was not achieved. Developments prevented him from making an unprecedented dive with the Turkish pound and now the course of the country's economy is a serious danger for him in his attempt to be re-elected.
The course of the Turkish pound
The value of the Turkish pound has fallen by 20% since the beginning of 2018 and today a Turkish pound is worth about $ 5. The Central Bank of the country was forced to raise key lending rates from 13,5% to 16% yesterday.
The course of the Turkish lira was not just a wake-up call for investor confidence in the Turkish economy. It has plunged the country's largest companies into uncertainty while already affecting the living standards of citizens, ie voters.
Erdogan's achievements and the current situation
In these circumstances, Tayyip Erdogan is preparing on Thursday to come forward for the final attack of his election campaign, during which he is expected to focus on the economic achievements of his government over the last 15 years.
At the same time, both markets and investors have expressed serious concerns about Erdogan's financial management, especially considering that his new term will find him with stronger powers after the constitutional reforms he passed in the 2017 referendum.
"He himself triggered the crisis"
Economic analysts and political opponents, commenting on the country's currency slump, say it was fired by the Turkish president himself, who bypassed the country's Central Bank's proposals to raise lending rates earlier.
Inflation in Turkey exceeded 10%, but Erdogan's desire to continue high growth rates made him negative to any thoughts of raising lending rates, despite the views of experts, who considered the measure as the only one that would could hold the course of the currency.
The "gratuitous shot" by Erdogan
The pound's latest dip was mainly due to Erdogan's reports during an interview with Bloomberg, when he revealed his intention to exercise more control over the country's Central Bank in case he is re-elected.
"Once we move to the enhanced Presidency system, our effectiveness will be very different," he said, referring to the Central Bank, adding that he would also take responsibility for the results of this intervention.
Ignore the warnings
However, Erdogan's opponents have long warned that an economic crisis is imminent. Former Turkish Central Bank Governor Durmus Yilmaz said Erdogan's rhetoric was extremely dangerous for the economy and would put the country at a dead end.
"Turkey experienced the same thing in 1994 and we were in a crisis," he said.
The rhetoric against the West
Despite the warnings, the Turkish President and his associates insist that the fall of the Turkish pound is nothing more than an attempt by the West to bring the country under its control.
Adviser to Turkish President Yigit Bulu said countries such as Britain, Israel and the United States were behind the monetary crisis.
"Today they are attacking the Turkish financial market from their keyboards in London, New York, Israel," he said in an interview with state-run Turkish television TRT. Bulut Gigit said that "everything we experienced in 2008, everything we experienced in 2013 with the events of Gezi, everything we experienced in the coup attempt, everything we experienced with the attempted occupation on July 15, today the same as the occupation attempt we see the economic version. Will we be afraid? "Never," he said in a statement today.