The detention of Istanbul Ekrem Urban Pastor ̇mamoğlu on March 19 created harsh sales pressure on the market last week. As a result of a series of measures taken and the exchange rate decreased this week.
To prevent the increase of the dollar, more than $ 25 billion in 3 days were sold. The Governor of the Central Bank Fatih Karahan declared this number at a meeting with foreigners. At that meeting, Finance and Finance Minister Mehmet Simsek gave the message that there was no permanent damage in inflation. The ultimate target inflation in the economic program is implemented and provides financial stability. For this, it is very important that the exchange rate does not increase. According to Karahan, the conversion rate from exchange rate to inflation is about 20 %. However, some economists believe that this has reached 100 % in recent years. The reason is that the increase in exchange rate negatively affects the price behavior. Vice Chairman of E -commerce Executive Association Emre Ekmekçi, due to the increase in the exchange rate of brands before the campaign ceremony, he said. Even an increase in 4 percent in dollars/TL has this effect. Risk of foreign water production Minister Simsek, investors at the exchange rate meeting of most of the increase of foreign production, added. The estimated impact rate is 60 percent of foreigners, 30 percent of companies and 10 percent of citizens' needs. After this minute, foreigners are expected to not increase the harsh exchange rate. The biggest risk is citizens and the company is moving to buy dollars. This is one of the most important risks in reports published by foreign banks. The central bank explained the changes in foreign exchange deposits of the residents of the country every week on Thursday. Last week, the foreign exchange deposit did not have an even an increase of $ 5.9 billion. $ 3.2 billion of increase is due to foreign buyers and $ 2.7 billion. Will inflation expectations increase? The only reason to increase inflation is not an increase in exchange rate. Expectations for inflation are also effective for price changes. The central bank measures the expectation of inflation of market experts, companies and citizens every month. In March, the expectation of inflation of market participants and the region has really improved. Market participants found 24.6 percent in 12 months later and 41.1 percent of the actual area estimated inflation. There is a slight increase in household expectations. Households, inflation will be 59.3 percent after 12 months. There is no reflection of the latest development and increased exchange rate in these data. Perhaps after 3 parts will increase next month. Increasing the expectations of companies' inflation makes them write a higher number while determining the product price. Increasing citizen inflation expectations is the result of continuing shopping despite high prices. This can lead to the appearance of a negative table for the disinfection process. Therefore, both foreign exchange and inflation expectations will be carefully monitored in terms of showing the impact of the current development on the future.