New system of gov’t will ensure better economic management: Erdoğan

President Recep Tayyip Erdoğan has commented on his recent visit to London saying the message he gave was that Turkey remains an “investor-friendly country.”

“We told them that Turkey is an investor-friendly country and nobody investing in our country faces losses or gets into hot water,” Erdoğan told reporters while returning from his three-day trip to the U.K.

“We will see if I was able to convince them in the upcoming period. We will look into the steps they will take to strengthen their current investments in Turkey or make new investments,” he added.

“It is all about the June 24 snap elections. God willing, I believe that the winning of the People Alliance’s presidential candidate will arouse excitement about Turkey, as in previous periods. We have been studying the lessons. You will see this more clearly when we state our election declaration. In terms of global capital inflows into Turkey and keeping the capital already invested here, a better future awaits us,” Erdoğan said.

Going against conventional economic theory, Erdoğan deems high interest rates to be the main cause behind high inflation. He also repeatedly suggests borrowing based on gold rather than the U.S. dollar, while often mentioning using national currencies in international trade.

“Some new things are being written [for a new economic program]. The presidential system of government will ensure healthier management of the economy. We cannot say the bureaucratic oligarchy has been totally defeated in the current system, because the bureaucratic oligarchy still reigns over [the state]. One of the most important benefits of the presidential system of government will be the termination of the bureaucratic oligarchy,” Erdoğan said.

“I believe that efforts to do business with countries such as Russia, Iran, China, South Korea in local currencies and alternatives such as borrowing in gold are vital to escape exchange rate pressure,” he added.

“In the period following June 24 the system will be in operation, with all of its institutions, more healthily and faster. Those in power will have to behave more responsibly, recognizing that they will pay the price if they fail,” Erdoğan said.

Agreement with the UK on horizon

The president also voiced Ankara’s intention to increase trade with the U.K., saying a free trade agreement with Britain could be on the horizon. 

“The volume of our bilateral trade is now $16.2 billion. We aim at increasing it to $20 billion,” he said.

“A free trade agreement is on the horizon but I should not be voicing a schedule. I think they are ready to take steps on this issue after June 24,” Erdoğan added.

Also traveling with Erdoğan was Economy Minister Nihat Zeybekci, who said free trade agreement talks were “positive.”

“Up to now three meetings have been held on technical subjects. The course of negotiations to set up a free trade agreement with the U.K. has been going forward positively,” Zeybekci said.