May 14, 2023

The Turks and outside observers are trying to read the course and indicators of the presidential and parliamentary elections that Turkey is witnessing today, through the fluctuation of the exchange rate in the market, as a result of the closure of government and financial institutions, today and tomorrow, and considering the price of the lira, perhaps the most informative indicator of the stability of the markets and the continued confidence of hoarders and dealers.

The exchange rate of the Turkish currency did not change after the Turks started voting on Sunday morning, maintaining 19.5711, according to the “Aduit” website, while the exchange rate fluctuated from one market to another, according to the observations of “The New Arab” today, for the dollar to reach 20.50 in the Taksim region and 20.30 in the Taksim region. Al-Fateh and about 20 liras per dollar in the Lalali district, which contains the most exchange companies in Istanbul. While the price of the euro rose from yesterday’s price, to touch today, Sunday, the level of 21.2637 Turkish liras, with a slight increase in the price of gold, after the 24-carat gram recorded 1,265.120 Turkish liras.

The Turkish currency was affected by the decline in the interest rate that the opposition takes today, as evidence of the intervention of the candidate Recep Tayyip Erdogan in politics and monetary and his dismissal of three governors of the Central Bank during the previous two years, before the interest fell to 8.5% according to the last reduction in February by fifty basis points, after the earthquake. The destroyer that struck Turkey.

The Central Bank’s cuts reached 500 basis points over the past year in an unconventional easing cycle to counter the slowdown in markets and inflation in currency and prices.

However, economic analysts here believe that the policy of the Justice and Development Party, with its low interest policy at a time when central banks around the world raise interest rates, has been beneficial, citing the exit of funds from bank coffers to the markets and productive sectors, and the non-reduction of the exchange rate after the last interest rate cut and what followed. from two installs.

The Turkish lira entered the current year at a price of 18.8 liras against the dollar and about 20 liras against the single European currency, bringing its losses during the past year to about 30% compared to the price of the beginning of 2022, which did not exceed 13.5 liras per dollar, to add the year’s losses to its predecessor 2021, when the currency lost. Turkish currency accounts for about 44% of its value, making it among the most losing currencies of emerging countries.

The decline in the exchange rate of the lira and price inflation by more than 150% in two years affected the standard of living of the Turks and increased the poverty rate, which prompted the Justice and Development government and the head of the party, Recep Tayyip Erdogan, to promise the Turkish people a significant increase in the wages of government workers, by 45%, after the elections.

He confirmed during previous statements that his government is also preparing a plan to increase the minimum wage and the salaries of retirees, and pledged to increase net wages for veterans, those affected by terrorism and relatives of martyrs who fall under the item of government employment, and he said that his government’s priorities have always been to protect government employment and citizens in general from the effects of inflation. .

The annual inflation rate in Turkey reached its highest level in about a quarter of a century in October of last year, after it rose on an annual basis to 85.5%, before declining in recent months, according to data issued by the Turkish Institute of Government Statistics, reaching 43.68 percent. percent on an annual basis in April.

The recent increase in wages comes after a series of increases witnessed in the past year, with the aim of improving the standard of living of citizens, which was affected by the rate of inflation, which raised the poverty rate in the country.

The first increase was at the beginning of last year by 50%, bringing the minimum wage at that time to 4,250 pounds, followed by a second increase in July by 30%, bringing the minimum wage to 5,500 pounds, and then a third increase on December 22, by 55. %, bringing the minimum wage to 8,500 Turkish liras.

According to recent data issued by the Turkish Workers’ Union, the poverty rate exceeded 13%, which are numbers that Turks have not known for more than 20 years, which prompted the Turkish Minister of Labor, Vedat Bilgin, to finally renew promises to raise the minimum wage, to match the inflation that has been declining in Turkey for the fourth month. Respectively, indicating during statements that the minimum wage will be reassessed next July.

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