Şimşek held meetings while the operation against İmamoğlu was ongoing! The promises he made have emerged...

The detention of IMM Mayor Ekrem İmamoğlu in a dawn operation on the morning of March 19 had turned the markets upside down.

İmamoğlu, who had been in custody for 4 days, was arrested yesterday on charges of corruption. His arrest on terrorism charges was denied.

It has been learned that during this process, Treasury and Finance Minister Mehmet Şimşek held meetings with the economic world.

While it is expected that news flow will continue to shape the market, Sözcü columnist Erdal Sağlam shared striking behind-the-scenes information in his article titled 'Şimşek promised that the exchange rate will be held and interest rates will be increased'.

“EXCHANGE RATE INCREASE WILL NOT BE ALLOWED, INTEREST RATES WILL BE RAISED…”

Stating that “Treasury and Finance Minister Mehmet Şimşek has moved to ‘crisis management’ to reduce the impact of political developments on the economy,” the author shared the inside information that “Minister Şimşek met with bankers and business world representatives and promised that ‘to stop the crisis as soon as possible, increases in exchange rates will not be allowed, and interest rates will be raised’.”

The author, who stated that Minister Şimşek attended a meeting with bank general managers last Friday evening, following a 25 billion dollar reserve loss in three days, and subsequently a meeting with a large number of large and small business people without the invitation of a specific association or union, conveyed that the business people noted they had gained the “impression that Minister Şimşek received instructions from the President to do everything possible to reduce the impact of political turmoil on the economy.”

“INTEREST RATE CUT IS NOW A DREAM…”

Continuing, “While business people said that ‘an interest rate cut in April is now a dream,’ they expressed that they received a message that ‘the policy rate could even be increased’ if necessary,” Sağlam shared the inside information that “they stated that Şimşek did not explicitly say interest rate hike but said ‘but interest rates will continue to be increased if necessary’,” and shared the following assessment regarding the reason for this:

“ERDOĞAN SAW MORE PARTICIPATION IN PROTESTS THAN HE ESTIMATED…” 

“The impression of the business people is; ‘President Erdoğan saw much more participation in the protests than he estimated, and he was already expecting high participation for the CHP’s primary election, and he is worried that the political effects of these will grow significantly when long-lasting economic distress is added to them.’ 

“WE WILL USE EVERY TOOL…”

They derived this impression from Şimşek’s very determined words that ‘we have many tools, we will use every tool, we will calm the markets as soon as possible’ and his uneasy demeanor.”

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News Source: 12punto