Adnan Bali, the CEO of private lender Isbank, has warned the Turkish government to adhere to free market rules as the Lira continues to weaken amid the crises between Ankara and Washington.
In his speech at Gaziantep Chamber of Industry, Bali warned Turkish authorities that fully implementing free market rules is crucial.
“Free market means wealth, abundance. Controlling the market means impotence, constraint. From the moment you share the feeling that something is limited, the human organism begins to demand over this need with its defensive reflex.”
Bali explained that the government’s pressure on the market might provide short relief but cannot help businesses in the long term.
Bali mentioned that media coverage of the Central Bank of Turkey’s repo auction and the Russian S-400 defense missile system negatively affected the Turkish currency, with the Lira trading at 6.10 against the US dollar.
“Overseas investors are not negative about Turkey, but if the Turkish lira weakens to 6.12 or more, this will not be positive for the market,” he stated.
“Turkey will overcome difficulties”
By mentioning Turkey’s very strategic location, which is close to important markets, Bali said that Turkey will overcome all the hurdles with its younger generation.
“Turkey generated 7 million new jobs over the past 10 years, a figure more than the total population of several EU countries. We must create 800,000 new jobs every year to keep unemployment stable,” he stressed.
The tension between Ankara and Washington is increasing as the US government fears that Turkey will operate both the F-35 and the Russian S-400, thereby threatening NATO’s defense system. Turkey’s Supreme Election Board’s re-run decision on the Istanbul election, the drain on the central bank’s assets, and the trade war between the US and China are some of the factors that have had a huge negative impact on Turkey’s economy.
Turkish economy bosses have recently introduced rules to support the lira, such as imposing a one-day settlement on some purchases of forex by individuals.