The essence of the decline of the Turkish lira is due to Erdogan’s desire to reduce usury, that is, the so-called bank interest, reducing it from 20% to 16%, so the global markets went crazy and started either not to invest in Turkey or to withdraw its investments.
Erdogan focused his speech on the fact that the war is an economic independence war. Many people care about the world and do not care about the other day when they deal in usury. Party dissidents like Baba Jan, who was the Minister of Economy, accused him of bankrupting the treasury. As for Ahmed Davutoglu, his former prime minister, he said, “The issue is no longer.” Ignorance is treason.”
The government believed that reducing usury would revive the lira and people’s lives, but the result was the opposite, and economists, led by the bank’s governor who was sacked last year, believe that unless the country’s economic policy is changed, the lira will continue to decline and people’s situation will not be improved, and it will harm the popularity of the country. party.