Turkey<\/a> could be beyond the point of no return,” warns Patrick Curran of Tellimer, a firm of investment experts, who considers the Turkish lira to be totally disconnected from the fundamentals.<\/p>\n\n\n\n“As long as Erdogan is in the driver’s seat, nothing will prevent the pound from continuing to depreciate,” he adds, ruling out further investments in Turkish assets.<\/p>\n\n\n\n
Before ousting several members of the Turkish central bank, Recep Tayyip Erdogan repeatedly criticized the policy of the issuing body and called for a monetary stimulus to boost exports, credit and economic growth as looming in 2023 a presidential election.<\/p>\n\n\n\n
The Turkish president has also announced a 50% increase in the minimum wage to 4,250 lire (243 euros) per month for next year, which should help fuel inflation by 3.5 to 10 percentage points.<\/p>\n\n\n\n
“We believe the current mix of policies is essentially unsustainable,” said Maxim Rybnikov, director of sovereign ratings for the EMEA region at S&P Global Ratings.<\/p>\n","protected":false},"excerpt":{"rendered":"
Monetary crisis in Turkey is accelerating. In 2021, the dollar appreciated up to 129% against the Turkish lira. Interest rate cut by 500 basis points since September. 50% increase in the minimum wage, up to 10 points more on inflation. Turkey’s currency sank into the crisis on Friday, slipping again, 8%, to an all-time low,…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43],"tags":[],"class_list":["post-16149","post","type-post","status-publish","format-standard","hentry","category-useful-articles","category-43","description-off"],"yoast_head":"\n
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