Erdogan Spoke, Dollar/TL Rate Fell to 7.90!

Erdogan Spoke, Dollar/TL Rate Fell to 7.90! Erdogan spoke, the dollar / TL rate fell to 7.90! President Erdoğan announced that very serious reforms will be made in the economy. President Recep Tayyip Erdogan spoke at the AK Party group meeting today. Making important statements about the economy, President Erdoğan underlined that very serious reforms will be made. Stating that they will be with the central bank every step it takes, Erdogan said, "We will not hesitate to apply painful prescriptions if necessary, the need to keep interest rates at the lowest inflation level makes it difficult for us." The US dollar/Turkish lira fell sharply after President Erdogan made these statements. As the said statements strengthened the expectation that the central bank would increase the interest rates at the MPC meeting to be held on November 19, the increase in TL assets also started to increase. Following President Erdogan's statements, the dollar / TL rate recorded the lowest level after October 22 with a purchase price of 7.89. In the October MPC meeting, when the interest rate was not increased, contrary to the market expectations, the exchange rate went up and broke a record by exceeding 8.54. Following surprising developments such as the resignation of the Minister of Treasury and Finance at the weekend and the change of the head of the CBRT, the dollar rate, which lost 6 percent on Monday, fell 3 percent after Erdogan's statements and fell below 7.90. On the other hand, euro/TL exchange rate remained around 9.2. Brown Brothers Harriman, one of the oldest and largest private banks in the United States, stated that it should be observed what kind of policy changes Lütfi Elvan will make to the Ministry of Treasury and Finance regarding the new appointments. “We think there will be a change, but we assume that it will not be the structural changes needed to put the Turkish financial-economic system on a sustainable path, but will be sufficient to extinguish the existing fire.” Naci Ağbal, as the Head of the CBRT; Mentioned that the interest rate decision to be taken from the PPK meeting to be held on November 19 is critical for the continuation of the optimism that emerged with the appointment of Lütfi Elvan to the Ministry of Treasury and Finance.       Source: investing.com