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Öztrak: The Central Bank sold 75 billion dollars in the market to keep it dry.

CHP Deputy Chairman and Party Spokesperson Faik Öztrak made a presentation titled “A New Story for Turkey, New Generation Development Strategy” at the 27th Term 5th Study and Evaluation Meeting of CHP’s Parliamentary Group. It was learned that Öztrak gave information about the 17-item Global Goals for Sustainable Development of the United Nations in his presentation and that the CHP’s new generation development strategy is also suitable for these purposes. In his evaluation after the program, Öztrak said: “Today it is important for Turkey to have ample and cheap financing. Access to quality financing is important. In this context, when you look at the world, within the framework of sustainable development goals, within the framework of the green agreement, within the framework of the Paris Climate Agreement, within the framework of social supports, very serious amounts of funds are provided in the world. Developed countries use it to a large extent. Among the developing countries, a limited number of countries take advantage of these principles. Like Chile, for example. We will ensure that Turkey abides by these principles, and by forming its growth strategy within this framework, it will procure funds from international markets at much more reasonable costs. It is out of the question to suddenly reduce an inflation rate of 80 percent the next morning. Of course, this disinflation process requires taking steps that will rapidly change expectations and normalize monetary and fiscal policy. We are creating the necessary framework to take these steps… We think that we will reduce the uncertainties within six months, and that we will enter the sustainable development process within a year.”

“The Central Bank does not comply with the methods”

Öztrak said that CHP Chairman Kemal Kılıçdaroğlu said, “Another $75 billion has evaporated since the beginning of the year. Now the question we need to ask is where and to whom was the $203 billion given? To whom was it sold through the back door?” He evaluated his words as follows: “From the beginning of this year until today, the Central Bank has sold 75 billion dollars of the foreign currency received in the market in order to keep the exchange rate in place. The Central Bank did not sell directly. Again that old method; has given it to the market in a way through public banks. If Turkey applies a currency system, it is clear how to sell and buy foreign currency here. The Central Bank has not followed these methods for a long time. It transfers it to the public benches from the back of the bank, and from there it is sold in the market. It’s not the right approach. It is not a behavior that an inflation-targeting central bank should follow… It was $128 billion by the end of 2021, you add 75 to it. Our President also pronounced this number. We have something to say. To whom, where and how did these unsold foreign currencies go? This must be investigated.”

“Policy rate became signage rate”

Regarding the Central Bank’s reduction of the policy rate to 12 percent, Öztrak said, “Now the policy rate has become the signage rate.” he said, “The Nabataean Minister also said, ‘We neutralized the interest of the Central Bank’. The interest rate drops to 12, but when you look at it, it only works. He is constantly increasing the amount of money to be paid under this currency protected deposit. Because they can’t keep it dry. The Turkish lira continues to be a stamp. Therefore, the expenditures to be made from the budget are increasing rapidly. All this has a consequence. You are giving up another expense in order to be able to make this expenditure. For example, you reduce the incentives you will give to the farmers and the tradesmen. It’s a matter of preference. A limited number of depositors are preferred over a wide range of farmers and artisans.” (PHOENIX)

Anton Kovačić Administrator

A professional writer by day, a tech-nerd by night, with a love for all things money.

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