there are three objectives that the politicians of the open economies would like to achieve.
1) stability of Exchange
2) autonomy of monetary policy
3) freedom of movement of capital, many experts believe that the Turkish country will try to impose capital controls, which was the same that made Malaysia in Crisis Asian in 1997, which was very bad.
The value of the Turkish lira against the euro has decreased by 36% this year.
Again hear the term “corralito” which took place in Argentina between 2001 and 2002.
This is the limitation imposed by the Government to the residents of the freedom to dispose of money in cash, deposited in the banks by the account holders. It also allows movements such as transfers abroad.
In addition to this the unknown effects that could have on the activity the tariffs imposed by Donald Trump and, far from putting cold Washcloths to the dispute, President Erdogan called on his country to boycott U.S. electronic products.
However, investors there are doubts and uncertainty over the future of Turkey, suffered a 15% inflation and a high fiscal deficit.
Poured in this op-ed content is the sole responsibility of the author and do not necessarily reflect the editorial line nor the counter position.
