Fear of coercion is widespread capital control V Türkiyeeight days before the second round of the presidential elections on May 28, according to our correspondent in Istanbul, Manolis Costidis. After a week of turmoil in the money markets, when investors reacted with great skepticism to the clear advantage gained in the first round, Tayyip ErdoganSince yesterday, many banks have introduced restrictions on gold markets and when withdrawing from credit cardswhile restrictions are also expected in the foreign exchange markets.

While lb. continues to hover near its historic zenith against the dollar, while (official) inflation hovered around 44% year on year, and those who can afford it are rushing to convert their Turkish lira into gold or foreign currency to protect their obsolescence savings. Meanwhile, central bank interventions to support the lira and Tayyip Erdogan’s growth policies in the pre-election period have dangerously reduced his reserves. In accordance with Financial Timesthe reduction in gold and foreign exchange reserves amounted to about 17 billion dollars during the six weeks of the election campaign.

Turkey is facing a growing current account deficit, currently valued at $50 billion, while its short-term external debt stands at $180 billion. Adverse trends are pushing Erdogan to abandon his unorthodox economic policies, raise interest rates and pursue austerity policies to stabilize the economy. economy. However, the Turkish president himself insists on opposite messages, preferring development over stabilization.

Erdogan invites citizens to celebrate his re-election and the fall of the city together.

What does Erdogan say?

“Please look at what happens the day after the May 28 elections. You will see that interest rates will fall along with inflation,” Erdogan said in an interview. CNN. Asked by reporter Becky Anderson if this means he intends to continue the same economic policies if re-elected, he replied, “Yes, of course,” before adding, “I have a strong stance that interest rates and inflation are directly related. The lower interest rates, the lower inflation. I say this as an economist. The Turkish president studied business administration, but it is not known if he ever worked as an economist. Yesterday Turkey celebrated the “Day of Atatürk, Youth and Sports”, a holiday that coincides with the anniversary of May 19, 1919, when the founder of the Turkish Republic arrived from Istanbul to Samsun to start the war of independence. In his message for the anniversary, Erdogan spoke of “one of the greatest and heroic epics” of the Turks, who “did not succumb to oppression and acted as a united front against the imperialist forces.” In another message, he urged the citizens to secure his re-election in the second round, adding: “Let us celebrate together the great victory on May 28 with the anniversary of the conquest of Constantinople on May 29, 1453.” Late last night, in an attempt to rally support in the second round and secure his re-election, Erdogan met with ultranationalist leader Sinan Ogan, who finished third with 5% in the race.

Numbers

The Turkish lira has fallen 60% against the US dollar in the past two years.

44% was inflation in the country on an annualized basis at the end of April.

Turkey’s current account deficit is estimated at $50 billion.

An estimated $180 billion is Turkey’s short-term debt.

The national income per capita increased by 265% during the years of Erdogan’s rule.

In the six weeks leading up to the election, foreign exchange reserves fell by $17 billion.