The effort of “trivializing the issues” demonstrates the stance of Turkey's economy administration of “intervening on the symptoms and not on the issues.” It is the effort to sooth the society, to narcotize them by saying, “If you do not know, have not heard of it, if you do not care, then you are happy.”
Turkey's Central Bank unexpectedly hiked interest rates on Sept. 24, triggering an improvement in the lira's value against the dollar. The Turkish Lira has sunk to record lows over the past month as Ankara's currency interventions proved futile.
Failing political regimes are like marriages on the rocks – when it gets too dreary, they remember the past or promise the moon in some unspecified future date. But take away the AKP’s tales of glory and people face a sober autumn with COVID-19 and forex spinning out of control.
Turkey's banking authority lowered the mandated loan-to-assets ratio for deposit banks to 95 percent, formerly 100 percent. The relaxing of the stimulation policy follows record devaluation of the Turkish Lira against the dollar.
Turkey must restore its economic credibility if it hopes to secure needed foreign funding and return to growth, said President Recep Tayyip Erdoğan’s former economy czar who recently broke away and founded his own party. “Turkey must find that forex soon” but it needs to “reinstate the reputation and confidence in its economy management first,” Ali Babacan said.
The ruling Justice and Development Party (AKP) government has appealed to foreign allies in an urgent search for funding, three senior Turkish officials told Reuters. Treasury and Central Bank officials have held bilateral talks in recent days with counterparts from Japan and the United Kingdom on setting up currency swap lines, and with Qatar and China on expanding existing facilities