Economy writer Alaattin Aktaş made a 2023 evaluation for the Turkish economy. Stating that 2023 should be divided into two as “before and after the elections”, Aktaş emphasized that the most fundamental problem of the Turkish economy is foreign currency. Aktaş pointed out that the lack of foreign exchange caused many economic problems.
Aktaş stated the following in his article:
“Turkey’s main problem is that it cannot earn enough foreign currency.’
The lack of foreign exchange is actually a result of course… If the foreign trade balance was better established or if the deficit could be closed with other incomes… Should we have a deficit, then there would be no problem in the entry of foreign resources, could we not find resources, at least if cheap borrowing could be obtained?
In this case, there is no problem of lack of foreign exchange, because of this deficiency, the exchange rates do not climb and this does not break records in inflation.
Unfortunately, we do not have enough foreign currency, we cannot find it. Due to the insecurity we have created, we cannot attract either direct investment or portfolio investment, and the foreign exchange that came as portfolio investment has almost completely disappeared. Don’t the lenders see our desperation, and they turn the situation into an opportunity and force us to pay high interest rates.
This is the most important problem of 2023 and beyond; is the currency.
Due to the interest rate cut initiated in 2021 and the economic policy implemented within that framework, Turkey could not find foreign currency and lost its holdings. Then the carriage was started to turn the mill with water…
Just let that mill turn until the election!”
patronlardunyasi.com