Ibrahim Kalin, spokesman to Turkish president Erdogan, is speaking in Ankara
- Lira fluctuations are part of "perception operation"
- Turkey ranks among the top in terms of banking system strength
- Turkey doesn't want an economic warfare with anyone
- Foresees normalisation in Turkish economy
- Lira developments show that Turkish measures are working
This is rather worrying. A currency that fluctuates 2-3% in an hour during a regular trading day is not normal and just because the lira isn't at record lows anymore doesn't mean that the situation is fixing itself.
If they really believe this is the solution, then I'm very much inclined to believe that the lira may see more pain in the near future. The fundamentals that are in place that brought us to where we are have not changed. And I don't see how the lack of a long-term plan is going to alter that perception.
Sure, stopgaps every now and then here and there is useful to plug holes in the wall. But what happens when the roof comes falling down? That's something no cork in a hole is going to solve.
