AKP Chairman and President Recep Tayyip Erdogan announced that the Gulf countries have provided financing to Turkey in the past days and that these aids relieved the Central Bank and the markets, albeit for a “short term”. Erdogan did not explain which countries the aid came from, but said that he would visit these countries to thank them after the presidential elections to be held two days later.
AKP Chairperson and President Recep Tayyip Erdoğan attended the CNN Türk-Kanal D joint broadcast yesterday evening (May 25) and answered questions about the agenda. Erdogan, who claimed that the presidential candidate of the Nation Alliance and CHP leader Kemal Kılıçdaroğlu and his co. “No one should worry, our economy, banking and financial system is very sound” said.
In the continuation of his speech, Erdoğan explained that the Gulf countries provided financial support to Turkey and said:
“There were countries that deposited money into our system from the Gulf or something. What this did, of course, unavoidably relieved our Central Bank and our market, albeit for a short time.”
Erdogan, who did not provide information about which countries provided financial support or the amount of incoming financing, continued as follows:
“Hopefully, when we close this election on Sunday, you will see how the leaders will come here. Or how I will go quickly to express my debt of gratitude to those leaders, we will see these too.”
Erdogan wants to win the second round of the presidential elections, which will be held two days later, and extend his 20-year rule. The Ankara government signed a $28 billion swap deal with the United Arab Emirates (UAE), Qatar, China and South Korea.
First time since 2002: Central Bank’s net reserve is negative
According to the official data released yesterday (May 25), the net foreign exchange reserves of the Central Bank of the Republic of Turkey (CBRT) are negative for the first time since 2002. The Central Bank’s net reserves fell by another $2.5 billion last week and fell to negative. Currently, net reserves are at the level of minus 0.2 billion dollars.
CHP General Secretary and economist Prof. Dr. Selin Sayek Böke drew attention to the depletion of foreign exchange reserves and “We are on the eve of a balance of payments crisis” he wrote.
IYI Party Economic Policy President Prof. Dr. Bilge Yılmaz also drew attention to these developments in the economy, “We still have a chance to recover from the destruction of the economy with the least possible damage. Let’s not waste it” said.
Economist Prof. Dr. Hakan Kara also stated that the news that the net foreign exchange reserve of the Central Bank has decreased to negative is incomplete and said. “It has been four years since the net reserve went negative in practice” said.
Tags: Erdogans reserve statement Gulf stuff countries gave relief short time