HDP MP Paylan asks ‘whether Turkey has adopted fixed exchange rate system’

Click to read the article in Turkish

Peoples' Democratic Party (HDP) Diyarbakır MP Garo Paylan has addressed a Parliamentary question to Minister of Treasury and Finance Berat Albayrak, asking him why the exchange rate of US Dollar (USD) has been fixed at the level of 6.86 Turkish Lira (TRY) over the past weeks.

Noting that the state is trying to control the surge in exchange rates by selling foreign currency through public banks, Paylan has said, "In a new move, you have fixed the exchange rate of dollar at 6.86 TRY in the last weeks."

"It makes one question whether Turkey has adopted a 'Fixed Exchange Rate System' instead of 'Floating Exchange Rate System'," Paylan has said and asked a series of questions to Minister Albayrak within this context:

'Based on what economic grounds do you do it?'

"Have you adopted 'Fixed Exchange Rate System'?

"Since you came into office as the Minister, how many billions of dollars have you sold from the reserves of Central Bank through public banks?

"Based on what economic grounds are you trying to fix the exchange rate of dollar at 6.86 Turkish Lira?

"What is the foreign exchange gap position of the public banks that you make sell foreign exchange?

"While the net foreign exchange reserves of the Central Bank have hit a record low, how will you maintain the 'Fixed Exchange Rate System'?"

Exchange rate of dollar around 6.86 since June 18

According to the data provided by the Investing website, the exchange rate of the USD has been around the level of 6.86 TRY since June 18. For the last three weeks, the lowest exchange rate of the US dollar was recorded as 6.84 TRY while the highest one was 6.87 TRY.

In the first week of May 2020, the exchange rate of the USD was as high as 7.23 TRY, then it receded to 6.70 TRY. However, in the second week of June, it increased to 6.80 and, for the last three weeks, it has been around 6.86 TRY. (EKN/SD)