Opposition lashes out at Erdoğan as dollar spikes following interest rate cut

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The Central Bank cut its benchmark one-week repo rate by 100 basis points from 16 percent to 15 percent yesterday (November 18).

In making the decision, the bank said it "evaluated the analyses to decompose the impact of demand factors that monetary policy can have an effect, core inflation developments and supply shocks."

With the latest cut, the monetary authority has lowered the key rate by 400 basis points since September.

The exchange rate of the US dollar jumped to over 11 against the Turkish lira, hitting another all-time record. The dollar had surpassed the 10-lira threshold just a week ago.

Opposition politicians slammed Erdoğan on Twitter amid the dollar's sharp rise.

Main opposition Republican People's Party (CHP) Chair Kemal Kılıçdaroğlu wrote, "Erdoğan, stop now" and once again called for a snap election.

Faik Öztrak, the spokesperson of the CHP, pointed out that the exchange rate of the dollar briefly declined just before the Central Bank's announcement of the policy rate and then inreased sharply. "Some people laughed all the way to the bank," he wrote.

It was a "scandal" that the Central Bank made the announcement five minutes later than scheduled, he noted.

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Dolar kurundaki şu hareket sadece iki saat içinde oldu. 10,80'lerden, 10,40'lara ve faiz kararının ardından 10,90'lara.
Birileri iki saat içinde "deveyi hamuduyla götürdü". pic.twitter.com/fRo3wMAhu6

— Faik Öztrak (@faikoztrak) November 18, 2021

İYİ (Good) Party Chair Meral Akşener wrote, "The cost of your stubbornnes in doing the wrong thing cost 3,000 lira for every single individual of our nation in one hour. Are you happy, Mr. Erdoğan?

"If you intentionally do this, it is outright treason. If it is the result of your incompetence, what needs to be done is clear: Elections must be held as soon as possible ... Enough is enough."

Peoples' Democratic Party (HDP) deputy Garo Paylan called on the government to "either fulfill your responsibility or resign."

Democracy and Progress (DEVA) Party Chair Ali Babacan, who served as the economy minister in AKP governments, said Erdoğan was responsible for the economic problems of the country.
(KÖ/VK)