September 29, 2022

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Turkey is raising electricity and gas prices like never before

Turkey is raising electricity and gas prices like never before

In the first days of the new year, when the Turkish government increased the burden on citizens, it surprised citizens by raising the price of electricity for homes and companies by 50 to 130 percent and the price of natural gas for homes by 25 percent. By the time the Turkish economy is hit by more than 21 percent of high inflation. It came amid sharp criticism of opposition from Turkish President Recep Tayyip Erdogan, due to repeated price rises.

The Turkish Energy Market Regulatory Commission also announced yesterday (Saturday) that electricity prices would increase by 52 percent for domestic use and 130 percent for industrial use.

Turks are generally affected by rising prices, especially food prices, and the annual inflation rate is expected to rise to more than 30 percent in December from 21.3 percent last November. Pressure of Recep Tayyip Erdogan.

The bank has made 3 cuts of 500 basis points in the last three months, cutting interest rates from 19 to 14 percent, pushing the Turkish lira to an all-time low. Its value fell more than 60 percent to 18 18.4 against the dollar on December 20, before the government intervened within the framework of a new economic model based on the preservation of the Turkish lira deposits denominated in dollars and gold and offsetting the difference. Between 3 and 6 and 19 and 12 months, the deposit period and maturity dates, to completely stop the depreciation of the lira, from December 17 to 24, the central bank paid about $ 7 billion in foreign reserves.

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The performance of the Turkish lira improved in a week, reaching less than 11 lira per dollar; But it returned with volatility last Thursday and Friday; It again lost 6 percent of its value and traded above .5 13.5 against the dollar.

In a New Year’s message on Friday, Erdogan urged the Turks to keep their savings in the lira, saying that after the sharp fall in the lira over the past two months, the latest exchange rate fluctuations are largely under control.

Erdogan called on the Turks to bring their gold reserves into the banking system, and reiterated that interest rates were the cause of inflation, contrary to accepted economic principles.

Turkish opposition leader and Republican People’s Party leader Kemel Glidaroklu has criticized the recent rise in electricity and natural gas prices since the first day of the new year, saying in a message to Erdogan on Twitter: “You are putting pressure on people’s neck at the beginning of the year. . You have drastically increased the prices of electricity and natural gas, and when people end their year and welcome the new, you have quietly pressed them. If these people do not attain peace and comfort, there will be no peace in your palace and in the institutions you have corrupted, let this be my word to you in 2022.

Meanwhile, data from the Turkish Statistics Office shows that Turkey’s foreign trade deficit widened to 6.9 percent last November, reaching $ 40 billion in 11 months, according to the General Trade Organization. Turkish exports rose 33.7 percent in November, while imports rose 27.3 percent from a year earlier, according to company data.

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