Erdogan: 'Currency fluctuations politically-induced'

Recent currency fluctuations in Turkey have political reasons, Turkish President Recep Tayyip Erdogan said Friday.

“This issue is totally directed by political motives,” Erdogan told a meeting of his Justice and Development (AK) Party’s provincial leaders in the Turkish capital Ankara.

The recent fluctuations have also shown that no country in the world was secure politically and economically, Erdogan.

Erdogan was referring to a recent surge in USD/TRY rate which he has said was as an economic attack by the Trump administration under a pretext of an ongoing legal case involving a US citizen with strong suspected links to terrorist activities targeting Turkey’s peace and stability.

Erdogan described the surge in USD/TRY rate in August as an “evidence of an attempted economic assassination”.

Washington has imposed sanctions on two Cabinet ministers for not releasing pastor Andrew Brunson, who faces terrorism-related charges in Turkey.

The US sanctions were political in nature as Turkey has rejected the US administration’s “disrespectful demands”, Erdogan said.

He also called Turks abroad to buy gold and Eurobonds to generate additional public income.

On Thursday the Turkish Central Bank raised its one-week repo rate by 625 base points, from 17.75 per cent to 24 per cent.

The president underlined: “The Central Bank raised the interest rates considerably. Now, we will see the results of [the bank’s] independence.”

Erdogan said Turkey had proved successful in averting those economic attacks thanks to measures deployed by state institutions and economic administration.

“Our fight in every field continues fiercely,” he said.

Erdogan also noted that Turkish exporters should take advantage of the current levels in foreign exchange rates to increase the volume of exports, and production and employment as well.