The head of “Corum” in Al-Arabiya: Erdogan’s policies to save the lira will not be successful

In an interview with Al-Arabiya, the chief executive of the Corum Center for Strategic Studies, Tariq Al-Rifai, held that the policies of Turkish President Recep Tayyip Erdogan, in saving the lira, the latter of which forced exporters to convert a quarter of their proceeds into the national currency, which “will not be able to maintain. the value in sustainable way “.

Al-Rifai ruled out that the policies were successful, “mainly because many Turkish banks and companies are in debt in foreign currency, and this has a strong impact on the financial sector and, in light of current policy, the process of transfer of risks resulting from the change in the exchange rate to the government by individuals and companies is a negative issue. “

He stressed that the state would have the burden of defending the value of the lira, “in in the event of a decline in the lira, the foreign exchange reserves of the Turkish central bank will disappear and this policy is temporary and unsustainable “.

The Turkish power plant forced Turkish exporters to transfer at least 25% of their revenues in Euros, dollars and pounds to the Turkish lira, in an attempt to curb the decline of the Turkish lira.The decision came amid a series of measures taken by the government and the Central Bank in Turkey to support the lira.

Monetary authorities have said that the central bank will buy 25% of the total income from exports of commodities as long as the exporters receive payments in dollars, euros or pounds. The measure aims to strengthen Turkey’s foreign exchange reserves by forcing companies to withhold some of their revenues from overseas sales in local currency.

The measure aims to strengthen Turkey’s foreign exchange reserves by forcing companies to withhold some of their revenues from overseas sales in The decision comes amid a series of measures after a year of heavy losses in the Turkish lira, which lost nearly half its value against the dollar last year. , in coinciding with the requests of the Turkish president Recep Tayyip Erdogan, the central bank, to reduce the reference interest rate.

As for oil prices, Al-Rifai warned of the slowdown in the return of oil demand in China due to restrictions in the face of the pandemic and closures, while maintaining the expectation of a gradual increase in supply from major producers, and therefore notes that demand will remain the most important in monitoring, because the second side of the equation, which is production, is easy to control or move in future.

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