Erdogan Endorses New Economic Model Amid Lira Drop

Turkish President Tayyip Erdogan has called on his people to be patient and trust his government’s new economic model, under which he has prioritized economic growth driven by low-interest rates.

“We are aiming for lasting prosperity, lasting stability. The prices we pay will be justified by the gains we make,” Erdogan said.

This comes after the lira lost 46 percent of its value to the US currency this year.

Erdogan said financial market volatility will eventually stop and that price hikes stemming from rising energy costs will stabilize soon.

Erdogan also called on Turks owning foreign currency to take advantage of his new economic model’s opportunities.

The Turkish central bank has cut its policy rate by 400 basis points since September, under pressure from Erdogan.

Turkish Minister of Finance and Treasury Lütfi Elvan had recently resigned from his post and has been replaced with his deputy, Nureddin Nebat.

This comes after Erdogan has implicitly criticized Elvan, who reportedly opposed his lower interest rate policy, which led to a plunge in the lira.

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