Erdogan is the only reason for high interest rates: Turkish economist

Emin Capa, a prominent Turkish economist, claims that President Recep Tayyip Erdogan is the only reason for the high-interest rates in Turkey’s deteriorating economy.

The economist appeared as a guest on a TV program on Halk TV, a mouthpiece for the main
opposition, Republican Peoples Party (CHP). “The interest rates are terribly high and the only reason for it is Recep Tayyip Erdogan,” Capa stated on Monday.

Capa spoke about the main reasons behind Turkey’s deteriorating economy, pointing out
high-interest rates, increasing unemployment, high inflation rates and the Turkish lira’s
decreasing value against the US dollar.

“There is no reason for the foreign currency to increase its value [against Turkish lira] on the
economic side of the issue. The reason for the increase is political. Due to [AK Party]
government’s political perspective, nobody counts on its economic actions [in
Turkey]. Foreign political figures also do not trust the Turkish government,” Capa underlined.

Capa said that Erdogan’s vehement pressure on Turkey’s Central Bank to keep interest-rates
low added to the reason for the decrease in the Turkish lira’s value against foreign currency.

Claiming that Erdogan uses “foreign powers” as an excuse for the decrease in the Turkish
lira’s value, Capa added: “These high-interest rates are the interest rates of Recep Tayyip
Erdogan. This high inflation rate is the inflation rate of Recep Tayyip Erdogan. These
increasing unemployment rates are the unemployment rates of Recep Tayyip Erdogan. This
economic crisis is a crisis of Recep Tayyip Erdogan.”

Ankara has repeatedly claimed that the Turkish lira’s fall was a “conspiracy” by unnamed
foreign powers to weaken Turkey.

The Turkish lira hit record lows in August 2018, after a diplomatic row between Turkey and the US over the almost two-year detention of an American pastor and Erdogan’s unorthodox economic policy that undermined the central bank’s independence.

Turkish Treasury and Finance Minister Berat Albayrak, who is the son-in-law of Erdogan, has also said the exchange rate volatility the country witnessed last year was the result of a foreign attack.

Erdogan says bankers will pay “a very heavy price” for buying FX

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