The new economic plan reach its purposes


The Turkish economy witnessed a sharp recovery last Monday, 20th of December; the economic improvement went beyond 33% within one day and night to achieve its highest level and stabilize at 12.44 TL vs. the American dollar; after a long series of substantial economic fluctuations.

In front of the Turkish Parliament, the Turkish president announced the (NEW ECONOMICAL PLAN) and many new regulations to protect Turkish citizens' and foreign investors' economic interests.

Therefore, we're informing you more about the project, the history of the economic fluctuations, when all that began? How will it change the Turkish economy facade? And how these transformations and improvements will affect Turkey's financial position nationally and globally.

The history of the economic fluctuations, when all that began?

The entire story began when a group of manipulative foreign and Turkish investors transacted their money into Turkey legally. Still, later on, these investors were established and formed what is known as the (hierarchical trading system) within many different Turkish markets and sectors. This hierarchical system is based on pumping money with known- sources assets but later Withdrawing the principal capital from the market after they were doubled, which leads to damage to the local Currency and the credibility of the Turkish market. With the repetition of this process, the local Turkish operation loses its value significantly.

In the beginning, it wasn't easy to control these operations by the Turkish government because the funds' assets were known and legal-transacted. Therefore, the Turkish government, led by Turkish President Recep Tayyip Erdogan, worked to establish a new economic system to protect Turkish markets without replacing the free market system.

What is the new economic plan:
President Erdogan announced the new strategic economic plan that aims to protect the Turkish Currency; The program will provide the following:

1- The new plan worked to launch a new financial mechanism that allows achieving the same level of potential profits for savings in foreign currencies by keeping assets in local Turkish pounds. Therefore the government put forward the plan, which guarantees the bearing of losses on behalf of the Turkish citizen; the government studied all aspects of the project and its future dimensions; in other words, the future of the Turkish economy will crucially change once for all.

2- The new economic plan worked to protect exporters from differences between currencies by setting a long-term exchange rate for exporting companies through the Central Bank. In the event of discrepancies, they will be paid in the Turkish Lira to the companies concerned,

3- The new economic plan created new tools for gold savings. New tools will be developed to encourage citizens to enter their gold savings into the financial system. Therefore as a further step, the government will integrate about 5 thousand tons of gold and supply it into the market.

The Turkish president stressed that his country "will emerge victorious from the war over its currency, and will not be subject to interest rates or inflation," adding: "Our economic plan aims to strengthen the free market and keep money and speculation lobbies away from harming the economy."

And he added, "We have not announced a plan that contradicts the free financial markets. On the contrary, we are working to implement our plan to keep interest lobbies and speculations away and to walk the path of economic success."

What is the opinion of the international press about what is occurring in Turkey
in terms of the economic level:

Timothy Ash, the chief emerging markets analyst at London-based BlueBay Asset Management, explained what occurred as a "crazy comeback."

He added: I don't think I have ever seen such volatility in the forex market in my 30+ year career," Ash said. He wondered if there would be time for the Turkish Lira to reach its fair value, which Robin Brooks valued at 9.5 to the dollar?

Analysts described that following Erdogan's speech, banks emptied large amounts of foreign exchange reserves, which led to a sharp decline in exchange rates, adding that new financial products and incentives - details of which are expected to be announced today - will support the exchange rate balance in favor of the Lira.

Also, the Turkish Minister of Industry declared: Our priority is to ensure the stability of the exchange rate

The Turkish Minister of Industry and Technology, Mustafa Varank, stated that the foremost priority of his country's government is to secure the equilibrium of exchange rates; this came in a speech given by Varank on Wednesday during his participation in the summit of the Turkish Association of Businessmen and Independent Industrialists "MUSIAD."

"Our main priority is to ensure stable exchange rates and products and expand economic predictability and productivity."

He added, "We will provide an economic environment that enables entry to finance for those who wish to invest."

To sum up, as a logical economic conclusion, is that the Turkish economy was and will always be ready to recover, to grow, due to the solid fundamental roots it historically has, therefore not only for those who are interested in banking and financial investing in Turkey but also for every foreigner investor, we strongly absolutely recommend you to invest now in Turkey, today yet we have an available asset with a reasonable cost for you to buy, but we are not sure about tomorrow.

Meanwhile, our advisors will be ready to give you more financial information.

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