Economist says , under pressure from tourism sector, Central Bank increases value of currency in a controlled manner
Economist Remzi Özdemir has raised concerns about Turkey’s economic challenges, focusing on exchange rates, inflation, tourism, and government policies.
He claimed that the Tourism Minister had visited the palace to express dissatisfaction with rising exchange rates, and the tourism sector’s pressure had led the Central Bank to allow a controlled increase in the Turkish lira’s value to meet a $60 billion revenue target. Özdemir suggested that this increase aimed to protect the tourism industry despite high inflation, predicting further currency rises in the coming months.
He criticized Turkey’s growing costs, arguing that cities like Istanbul and Bodrum had become more expensive than European counterparts. Although inflation is reported as under control, he noted that prices were outpacing wage growth, and the meat crisis has made food less affordable.
Özdemir accused the Turkish Statistical Institute (TÜİK) of manipulating inflation data, claiming this was done to suppress wage and pension increases. He also highlighted rising income inequality, with the government’s tax policies benefiting large corporations while increasing the tax burden on the public.
He also warned about the decline in meat consumption in Turkey, which could lead to long-term public health problems. Finally, Özdemir painted a grim picture of Turkey’s economic future, predicting deepening poverty as manipulated inflation figures and ineffective exchange rate policies worsen the public’s purchasing power.
