All this BS is being done to create distractions and diversions.
Errorgan has made too many mistakes but instead of fixing them, he make other errors to try and hide them.
Converting the Agia Sophia in to a mosque is just one example of such distractions. But it has no medium to long term benefit.
Investment funds withdrew more than $7 billion from Turkey’s local currency bond market in the six months up to the end of June - the largest first half yearly drawdown on record, WSJ said, citing data from Turkey’s central bank. “The way they pulled out of Turkey is really unprecedented.”
Meanwhile, Turkey’s central bank spent billions of dollars of foreign-exchange reserves and borrowed foreign currencies from domestic banks to buy lira to halt the slide in the currency. Despite that, the currency still slumped to record lows.
With the lira sliding, Turkey’s overseas borrowing costs have risen this year, which is spooking foreign investors.
Investors are also increasingly worried about how borrowers will repay their debt, as Turkish banks issued loans to households at a record pace in the first half of the year. The government is guaranteeing debt to small and medium-size businesses to keep credit flowing.
The WSJ reported that Turkey’s central bank now owes more in foreign currencies than it has in its coffers.
Turkey’s dependence on its reserves and borrowed currencies has led to investors speculating that Ankara heading towards a balance-of-payments crisis, which would leave Turkey unable to pay for essential imports or make payments on its external debt. So they wont be able to keep supporting the currency, Which will make the next round of currency depreciation quite devastating.
In which case, Turkey would be forced to let the currency weaken and raise interest rates, reducing economic growth, or to seek a bailout, the WSJ said.
The banks are basically going to go under and Turkey is going to default.
This is what Erdogan is trying to create distractions from because the average Turk is heading towards the poverty line and the upper middle classes are going to lose a substantial amount of wealth.
He has basically fckd the country and he thinks wars and sanctions will provide him with a scapegoat.
https://ahvalnews.com/turkish-economy/f ... market-wsj
