Economist says “There is no other way left except for upward move of interest rate or the exchange rate”

Evren Devrim ZELYUT, a prominent economist in Turkey has made the critical following statement regarding financial situation of the country, in an article published on media; ”The AK Party economy administration is trying to prevent an increase in inflation by holding the currency it receives from exporters and currency-protected deposits, and barely managing to keep the exchange rate under 15. “

ADMINISTRATION WILL HAVE TO SPEND BILLIONS OF LIRAS TO CONTROL THE EXCHANGE RATE

The economist went on to say; “However, the currencies the administration thus spent are borrowed money. The pain of every dollar that is not based on the export income of the country’s economy will come out very badly later. Already in July, when the KKM (currency protected deposits) story is over, there will be no way out for the administration, except to give billions of liras of interest again to control the exchange rate.”

DEFICIT MAY HIT US$ 65-70 BILLION AT YEAR END

The economist has also shared following: “The country is in need of 70 Cents – a situation we also experienced many years back, before AK Party. The deficit of $ 26.3 billion will hit $ 65-70 billion at best, at the end of the year. How will this open be closed? There is no other way out except for pulling up the interest rate substantially or the exchange rate may sky-rocket.”

SOURCE: diken.com.tr/evren-devrim-zelyut-kurun-ya-da-faizin-firlamasindan-baska-yol-kalmadi/