The erroneous economic decisions made by the government not only undermine the environment of trust, but also drive the investors away from the country day by day.
In the past days, the words of the President of the Central Bank of the Republic of Turkey Şahap Kavcıoğlu, "They take cheap loans and stockpile", caused a great tension between the Central Bank and the industrialists.
Evaluating the debate between the Central Bank and industrialists for the Milli Gazete, Economy Expert Azad Osmanlı also commented on the export figures announced by President Erdoğan for our newspaper.
“THE AUTHORITY IS A SOLUTION CENTER, NOT A COMPLAINT CENTER”
Azad Ottoman stated that the industrialists suffered from the costs.
"There is a fact that the costs are very high. Industrialists suffer from costs. We give the right to the President of the Istanbul Chamber of Industrialists. The balances change due to wars. Especially as Turkey, we are a country that is 60% foreign-dependent in energy. As a result, the costs inevitably increase. However, I do not agree with the Chairman of the Central Bank. It's not right to wave fingers like that. As a result, it would not be right for a resolution center to see itself as a complaint center. That authority is a solution center, not a complaint center. Therefore, this situation needs to be resolved. Industrialists will of course complain, but management centers should not complain. Regardless, this dual conflict will harm both the industrialist and the Central Bank. Markets buy these events differently. Today, the exchange rate is at 18's. As the markets perceive this situation differently, this of course reflects negatively on all of us, he said.
“SUCH STATEMENTS CAUSE THE ENVIRONMENT OF CONFIDENCE SHAKED”
Emphasizing that there are frequent changes in the chairmanship of the Central Bank, Osmanlı said, "There is an immutable rule of the economy in the markets. The economy is built on trust. Unfortunately, we have also changed many Central Bank Presidents. Such statements cause the atmosphere of trust to be shaken. Yes, we are trying to attract investors to the country because Turkey is a country where foreign currency is scarce. Since it is dependent on foreign countries in energy, the market takes its stance accordingly when such discussions get on top of it. Unfortunately, they are taking a step back and therefore turning to hot money. They prefer hot money over investment. You know hot money is always dangerous. Hot money creates a short-term cold shower effect, which can lead to hazards."
“OUR EXPORTS ARE INCREASING BUT OUR IMPORTS ARE INCREASING TOO”
Mentioning the export figures announced by President Erdogan at the cabinet meeting held the other day, "Our economic indicators are good in exports, as the President said. As you know, when the value of TL decreases, Turkey's export goods increase. Why? Because it means that a foreigner will come to our country and buy a lot of TL with less foreign currency and buy a lot of goods. It is an immutable rule in this world. In America, the dollar is devalued against the euro from time to time to lower European goods. The reason is to increase competitiveness. This is a strategy, but unfortunately it should be emphasized that our imports are high. The majority of our imported inputs are energy. One third of the cost of production is energy. We are dependent on foreign energy. In my opinion, you cannot control the current account deficit without controlling the energy and the exchange rate, so you cannot control inflation. Yes, our exports are increasing, but our imports are also increasing," he added.