{"id":1133506,"date":"2021-12-20T08:19:39","date_gmt":"2021-12-20T13:19:39","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1133506"},"modified":"2021-12-20T08:19:42","modified_gmt":"2021-12-20T13:19:42","slug":"turkeys-lira-sinks-again-as-erdogan-cites-islamic-sharia-law-to-defend-economic-management","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/turkeys-lira-sinks-again-as-erdogan-cites-islamic-sharia-law-to-defend-economic-management\/","title":{"rendered":"Turkey\u2019s Lira Sinks Again as Erdogan Cites Islamic Sharia Law to Defend Economic Management"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fturkeys-lira-sinks-again-as-erdogan-cites-islamic-sharia-law-to-defend-economic-management%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1133506&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p class=\"subheading\">ISTANBUL (AFP) \u2014 Turkey\u2019s troubled lira nosedived Monday after President Recep Tayyip Erdogan cited Muslim teachings to justify not raising interest rates to stabilise the currency.<\/p>\n<p>Erdogan has pushed the central bank to sharply lower borrowing costs despite the annual rate of inflation soaring to more than 20 percent.<\/p>\n<figure id=\"D-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"M-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"gmxrevmore\" class=\"H\"><\/figure>\n<p>Economists believe the policy could see consumer price increases reach 30 percent or higher in the coming months.<\/p>\n<p>But Erdogan said in remarks aired by state television late Sunday that his Muslim faith prevented him from supporting rate hikes.<\/p>\n<p>\u201cThey complain we keep decreasing the interest rate. Don\u2019t expect anything else from me,\u201d he said in the televised comments.<\/p>\n<figure id=\"M-ROS-B2\" class=\"a8d\"><\/figure>\n<p>\u201cAs a Muslim, I will continue doing what our religion tells us. This is the command.\u201d<\/p>\n<p>Islamic teachings forbid Muslims from receiving or charging interest on loaned or borrowed money.<\/p>\n<div id=\"attachment_19194450\" class=\"wp-caption alignnone\" readability=\"37\"><a href=\"https:\/\/media.breitbart.com\/media\/2021\/12\/GettyImages-1236954677.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-19194450\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/12\/GettyImages-1236954677-1024x683-1.jpg\" alt width=\"990\" height=\"660\" \/><\/a><\/p>\n<p class=\"wp-caption-text\"><em>A customer leaves a currency exchange agency near Grand Bazaar in Istanbul, on December 2, 2021. Turkish President Recep Tayyip Erdogan replaced the country\u2019s finance minister after weeks of economic turmoil in which inflation has soared while the Turkish lira record a lows. (OZAN KOSE\/AFP via Getty)<\/em><\/p>\n<\/div>\n<p>Erdogan has previously cited his religion in explaining why he believes interest rates cause inflation instead of reining it in.<\/p>\n<p>High interest rates are a drag on activity and slow down economic growth.<\/p>\n<figure id=\"M-ROS-B3\" class=\"a8d adSo\"><\/figure>\n<p>But central banks raise their policy rates out of necessity when inflation gets out of hand.<\/p>\n<p>The Turkish lira has now lost nearly half its value in the past three months alone.<\/p>\n<figure id=\"D-ROS-B2\" class=\"a8d\"><\/figure>\n<p>It was trading down more six percent against the dollar on Monday afternoon.<\/p>\n<p>A dollar could buy 7.4 liras on January 1. It was worth 17.5 liras on Monday.<\/p>\n<p>\u201cYou cannot run a modern economy integrated into the global economy on this basis,\u201d economist Timothy Ash of BlueBay Asset Management said in a note to clients.<\/p>\n<figure id=\"M-ROS-B4\" class=\"a8d adSo\"><\/figure>\n<p>\u201cEven Saudi Arabia really does not attempt full shariah compliant macro(economic) management.\u201d<\/p>\n<p><strong>Fight with big business<\/strong><\/p>\n<p>Turkey\u2019s nominally independent central bank \u2014 stacked in the past year with Erdogan\u2019s allies and supporters \u2014 has used four successive rate cuts to lower its policy rate to 14 percent from 19 percent.<\/p>\n<p>Diplomats think the powerful but increasingly unpopular Turkish leader believes that economic growth at all costs will help him extend his rule into a third decade in an election due by mid-2023.<\/p>\n<p>Erdogan last month launched a self-declared \u201ceconomic war of independence\u201d aimed at breaking Turkey\u2019s dependence on foreign investment and the fluctuating cost of imports such as oil and natural gas.<\/p>\n<p>But the policy is meeting increasing resistance from powerful business leaders who had largely rallied around Erdogan during his 19-year rule.<\/p>\n<div id=\"attachment_19194514\" class=\"wp-caption alignnone\" readability=\"36\"><a href=\"https:\/\/media.breitbart.com\/media\/2021\/12\/GettyImages-1237175552.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-19194514\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/12\/GettyImages-1237175552-1024x683-1.jpg\" alt width=\"990\" height=\"660\" \/><\/a><\/p>\n<p class=\"wp-caption-text\"><em>A Syrian man holds stacks of U.S. dollars (L) and Turkish currency in the rebel-held city of al-Bab in Syria\u2019s northern Aleppo province on the border with Turkey, on December 5, 2021. (BAKR ALKASEM\/AFP via Getty Images)<\/em><\/p>\n<\/div>\n<p>The TUSIAD big business lobby of major exporters issued an unusually firm rebuke of the president over the weekend.<\/p>\n<p>\u201cThe policy choices implemented here are not only creating new economic problems for businesses, but for all of our citizens,\u201d the big business lobby said.<\/p>\n<p>\u201cIt is urgent that we assess the damage that has been done to the economy, and quickly return to the implementation of established economic principles, within the framework of a free market economy.\u201d<\/p>\n<p>Erdogan attacked TUSIAD directly in his televised comments.<\/p>\n<p>\u201cI am calling you out,\u201d he said. \u201cYou have only one job: to ensure investment, production, employment and growth.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ISTANBUL (AFP) \u2014 Turkey\u2019s troubled lira nosedived Monday after President Recep Tayyip Erdogan cited Muslim teachings to justify not raising interest rates to stabilise the currency. Erdogan has pushed the &#8230;<\/p>\n","protected":false},"author":237,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1133506","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1133506","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/237"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1133506"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1133506\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1133506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1133506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1133506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}