Dec 12 2017

Erdoğan sees lira strengthening as speculators retreat

Turkish President Recep Tayyip Erdoğan said he expected the lira to strengthen against the dollar, blaming a recent slump in the currency on investors pushing for higher interest rates.

“As I’ve always said in the past, the strength of the dollar has no relation to Turkey’s economic realities," he said. "Because of that, I expect exchange rates to find the correct balance very shortly. I see short-term manipulations in the economy as futile attempts to legitimise pressure to raise interest rates.”

Erdoğan, speaking at the presidential palace in Ankara, repeated his assertion that high rates cause inflation, rather than tame it. “Get that into your heads,” he said.