The President and Justice and Development Party (AKP) Chair Recep Tayyip Erdoğan made statements about the economy administration of the country under the new government before his visit to the Northern Cyprus and Azerbaijan on July 10.
As an explanation to why he has appointed his son-in-law Berat Albayrak as the Minister of Finance and Treasury, President Erdoğan stated, "He successfully worked in the private sector and has recently taken a course on the subject at Marmara University. We have appointed him because he is a friend of ours with such a background."
Erdoğan also said, "Even though some people are trying to escalate this issue, you will see that it [dollar] will fall. I am speaking with such certainty."
However, at 12 a.m. today (July 12), the US dollar reached the level of 4.97 Turkish Lira (TRY), setting a new record.
The US dollar reacted similarly when the new cabinet was announced by President Erdoğan. With the announcement that the economy of the country, which was administered by Mehmet Şimşek, Naci Ağbal and Nihat Zeybekçi in the 65th government, was handed over to Berat Albayrak, the TRY suffered a loss of value of approximately 4 percent.
As of today, the Turkish Lira's loss of value against the US dollar over the last week has reached 8 percent.
Commentary by Financial Times
In a commentary published on the Financial Times (FT) today, the current account deficit of Turkey has been underlined. The FT has emphasized that the country needs a hot money flow of 200 billion dollars from foreign investors in a year so that it can manage its debt.
In the commentary, it has also been highlighted that foreign investors have concerns about the new system as well as the new cabinet. The newspaper has stated that foreign investors are concerned about how Turkey can manage its 880-billion-dollar economy under the new Presidential system where the power is concentrated in the hands of Erdoğan. (HK/SD)
* Sources: investing.com, financialtimes.com, Dünya newspaper
* Photograph: Murat Çetinmühürdar - Baku / AA
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