Economic crisis psychological, not rational - Turkish Justice Minister

Turkish Justice Minister Abdülhamit Gül said Turkey's economic crisis was psychological, not rational, talking to the press in a meeting with businesspeople in southeastern Gaziantep province, Turkey's pro-government Hürriyet newspaper wrote on Friday.

Turkey’s lira has slumped about 40 percent against the dollar this year, inflation has accelerated to 17.9 percent and interest rates on loans have surged, cutting into spending power and employment opportunities. 

Meanwhile, the gross foreign currency reserves of Turkey’s central bank fell $1.25 billion in a week to $68.92 billion on Sept. 14, the lowest level since April 2010.

"We are making all the necessary adjustments (on the economy). We will handle these difficulties together. We see these (economic) problems of Turkey are more likely to be psychological problems, rather than rational ones," quoted Hürriyet, the minister. 

Stressing Turkish economy's strength, Gül said Turkey had a bright future, and the government would take all the essential steps outlined in Turkey’s new three-year economic programme announced on Thursday by Minister of Treasury and Finance, Berat Albayrak.

Turkey has been dealing with an economic crisis since August after the United States imposed sanctions on two Turkish ministers and doubled tariffs on Turkish steel and aluminium imports over the detention of U.S. citizens.