Mahfi Eğilmez, who says 'The Turkish Lira will continue to remain valuable,' announces his minimum wage forecast

Economist Mahfi Eğilmez made assessments regarding the course of the economy.

Speaking on CNBC-e, Eğilmez said regarding the Turkish Lira, "The Turkish Lira will continue to remain valuable, that is very clear. Because people have already turned away from foreign currency. Central Bank Governor Fatih Karahan already explained this in his speech."

"DEMAND IS HIGH, THE TURKISH LIRA IS APPRECIATING"

Pointing out that Protected Turkish Lira Deposit (KKM) accounts have declined from 140 billion dollars to the 40 billion dollar level, Eğilmez said, "There is a 100 billion dollar foreign currency liquidation. In other words, the transition from foreign currency to the Turkish Lira is increasing. This is very natural because the interest rate is 50 percent. The exchange rate is not rising due to the effect of this conversion either. Demand is high, the Turkish Lira is appreciating."

Stating that the dollar exchange rate does not change as the TL appreciates, Eğilmez pointed to the CBRT's interest rate decision and stated that as long as this process continues, the Turkish Lira will increase its attractiveness.

EXPECTATION OF A 30-35 PERCENT INCREASE IN MINIMUM WAGE

Eğilmez stated that it seems likely that the increase to be made in the minimum wage will be in the 30-35 percent band. However, expressing that this rate might not be sufficient for wage earners, he said the following:

"If we had adjusted everything according to a 35% increase, we would have set the revaluation rate at 35% as well. However, the current revaluation rate is 43.93%. In this case, increasing the minimum wage only by the rate of inflation does not truly protect employees. An increase at the rate of inflation only allows them to maintain their previous positions; it does not bring about an improvement."

News Source: 12punto