May 16 2018

Exchange rate manipulation a scare tactic – former Turkish central bank head

Durmuş Yılmaz, a former head of Turkey’s Central Bank, said that he believes that the rapid decline in exchange rates is being deliberately provoked by the government in order to scare voters into voting for continuity, independent news site T24 reported.

“To me, it seems as though these types of movements in exchange rates are being carried out knowingly in order to spread fear among those who have taken out credit to buy their houses and cars that they could lose what they have if this order crumbles,” the ex-banker, who is now a prominent supporter of the opposition nationalist Good Party, said.

Yılmaz said he had been receiving phone calls from all across the world asking what was going on as the value of the lira slumped to 4.50 to the dollar briefly earlier today.

They were trying to learn whether the president’s announced monetary policies were his real intentions or whether they were merely electoral stances, he said.

“Do they really believe the theory they are espousing? (The callers) are really trying to learn this,” Yılmaz said.

“If I have to be honest, I haven’t completely worked it out myself.”