Adar Press

Turkish President Recep Tayyip Erdogan has claimed that the collapse of his country's lira is due to an "external conspiracy", a speech he has been making in recent years whenever he is subjected to a political or economic setback.

"The foreign plot seeks to increase interest rates and cripple the growth of the Turkish economy," Erdogan told a meeting with AKP members in Ankara. According to "Sky News".

 The Turkish president did not explain the details of the plot and no one behind it.

The Turkish president has repeatedly resorted to the theory of conspiracy whenever the Turkish economy suffered a setback, or suffered his party's loss, in an attempt to justify his failure and fall.

After his defeat in the first elections in Istanbul in late March, he said a plot had been prepared to deprive his party of winning the city elections, which turned out to be wrong, especially with opposition candidate Akram Emamoglu winning the election again.

In 2018, the Turkish lira collapsed and lost about 30 percent of its value, for reasons attributed by economists to tensions with Washington over the issue of Rev. Andrew Branson held by Ankara, and investor fears of Erdogan's intervention in the central bank's policy.

But the Turkish president justified the collapse of the pound by a conspiracy aimed at the country's economy and wanted to undermine Turkey's morale.

Erdogan surprised markets on Thursday after cutting interest rates to 19.75, up from 24 percent, more than expected, the biggest in 17 years.

The move came about three weeks after Erdogan was deposed by the former central bank chief, former Murad Stinkey, who opposed the interest rate issue, The move prompted investors to worry.

Erdogan says interest rates, which he calls "the mother of evil," are the biggest obstacle to Turkey's economic growth, which went into recession last year.

In contrast to all economists and economic theories, the Turkish president takes a position that lowering interest rates will drive growth forward and sees interest rates as the cause of inflation.

An economist told Bloomberg that Erdogan's strategy was risky and could lead to a worse scenario.

Translation: Adar Press.

Arabic  / English