Turkish economy sound despite lira’s fall: Erdoğan’s advisor

ISTANBUL - Anadolu Agency

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The precipitous fall in the value of the Turkish Lira does not portend a crisis in Turkey, a key advisor to President Recep Tayyip Erdoğan said on Aug. 19.

Cemil Ertem’s remarks came a day after the lira again hit record lows against the dollar after the Turkish Central Bank announced that it was holding interest rates at current levels.

“The Central Bank also did not interpret the rise of the rate as being long-term, nor as a sign of crisis,” Ertem told Anadolu Agency.

“What is important here is that the Central Bank also affirmed that in this manner it sees Turkey’s economy as being strong. We also see the Turkish economy as strong. There is no sign of crisis in Turkey [now], and not in the near future,” he added.

The currency fell to a historic low of around 2.9 against the dollar after the Central Bank’s rate decision on Aug. 18.

The lira has slid to a series of record lows against the dollar over the past week after coalition talks between Turkey’s main political parties ended without agreement.