Economy
The current financial crisis in Turkey demonstrates the rapid devaluation of the Turkish lira. After the second round of presidential elections, the Turkish lira has been falling in value almost daily, breaking new historic lows. Thus, on June 22 it overcame the psychological mark of 24 lira per dollar. All of this was the result of obvious irregularities in Turkey’s financial management, when the authorities, for populist purposes and pragmatic reasons of increasing the number of their supporters in elections, artificially kept the low credit rate of the Central Bank to encourage small business and support domestic production. However, the market system of the Turkish economy, one way or another, is integrated into the global economy, where the rules of financial lending and investment are determined not by the Turks, but by their Western allies. Accordingly, the policy of the Central Bank of the Republic of Turkey must take into account the international economic situation and established norms.
Alexandr Svaranc
