Article by a prominent expert in the economy sector: How is the Dollar kept stable?

Mahfi Eğilmez, one of the prominent experts in the sector addressed frequently asked questions. In a post titled “Questions and Answers on Current Economic Issues” on his blog he explained the stable trend of the dollar, the rule of law, whether it applies to investments, and how TL interest rates turn into dollar interest.

In his responses to economic questions, Mahfi Eğilmez addressed current economic issues. Regarding the stability of the dollar, he explained that the Central Bank had been selling foreign currency to suppress the exchange rate and later bought dollars to keep the rate stable.

However, he emphasized that this situation was unsustainable. He also explained that TL interest rates had started to function like dollar interest rates, as investing in TL with high interest provided significant returns when converted back to dollars, even if the exchange rate remained unchanged.

On the future of cryptocurrencies, he stated that cryptocurrencies currently only serve as a store of value and that it is difficult for them to spread beyond international trade. Regarding the rule of law, he pointed out that foreign investors focus on stability, but emphasized the importance of the rule of law. He mentioned that, as seen in examples from China and Korea, stability was crucial for investors, even in legal systems that differ from Western norms. However, he warned that the weakening of the rule of law in Turkey created uncertainty.

Finally, he stated that learning to live with inflation in Turkey was difficult because the uncertainty in the economy and finance did not provide rational solutions.