A big wave of raises is coming after the election

A big wave of raises is coming after the election


Economist Oğuz Oyan announced that there will be big increases after the election. Oyan said that a new wave of raises will come.

Speaking to DW Turkish, economist Prof. Dr. Oğuz Oyan pointed out that although the dollar exchange rate has reached records recently, the increase in parity is still behind inflation.

Stating that the dollar exchange rate has increased by 6.7 percent since the beginning of the year and the inflation in January was 6.7 percent, Oyan said, “This increase may be the equivalent of the inflation in January. However, we are now at the end of February. In other words, despite all the records, the exchange rate is moving below the inflation rate.” ” says.

Emphasizing that last year, the TL had to depreciate by approximately 62 percent in order for the dollar/TL parity to remain equal, but the increase in parity remained slow and there was a similar situation to the current one, Oyan said, “The government has a goal to keep the dollar out of control until the elections. First He had a goal of not exceeding 31 liras, now he should not exceed 32 liras.

Therefore, foreign exchange sales continue through the front or back door of the Central Bank. “In a sense, exchange rates are prevented from getting out of control,” he says.

AFTER THE ELECTIONS THE ROAD WILL BE OPEN FOR THE EXCHANGE

According to the news in Gerçek Gündem; Stating that there is an expectation that these thresholds will be removed after the elections, there will be no intervention in the exchange rate and there will be a faster depreciation in TL, Oyan is of the opinion that the increase in the exchange rate will accelerate according to the average exchange rate expectation of 36.8 TL set out in the Medium Term Program. .

According to Oyan, who adds that this average exchange rate falls behind the inflation expectation, there is also pressure from domestic and foreign capital circles to increase the exchange rate.

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FOOD PRICES WILL RISE

While the increase in inflation means the erosion of the value of the local currency, it leads to an increase in the exchange rate, and the increase in the exchange rate also feeds inflation.

So what will be the consequences of the rise in foreign exchange on inflation?

Prof. Dr. Oğuz Oyan points out that the rise in exchange rates affects food prices through input prices.

Underlining that Turkey is externally dependent on agricultural inputs such as diesel, fertilizer, medicine and feed, Oyan emphasizes that the increase in food prices has a negative separation from the world and is above the average inflation.

“We can already say that there will be a new wave of increases in agricultural prices. It will accelerate towards mid-spring. Because it is not possible to produce at these prices,” Oyan said, pointing out that this would lead to higher inflation felt by the citizens.

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This news article has been translated from the original language to English by WorldsNewsNow.com.

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