When the president pressures the central bank which is supposed to be independent this happens.
erdo says drop interest rates, while the bloody currency is dropping which is laughable. Turkish lira is dropping alot more than similar countries, infact its probably one of the worst currencies against the dollar.
First and foremost, leave the central bank to take its own decisions. The solutions to the rest of the problems are making deep reforms in every sector.
Here is my understanding from the recent weeks I've been watching Bloomberg. From what I understood, inflation is mostly due to consumables like food. Especially meat products had the worst inflation. Demand for meat consumption in Turkey doubled in the recent years (since 2012 if I remember correctly) and the production wasn't able to keep up with the high demand. The government has got various programs to tackle this issue, like giving animals to (young) farmers so they can multiply them.
When it comes to currency, the TL was one of the worst but it's been gaining traction in the recent months compared to currencies of developing countries. The more I keep watch on macro-economic trends, the more I see how intertwined the faiths of the economies of all developing countries are. Especially Mexico, Brazil and Turkey, because these countries are considered to have high political risk.
For instance, the Turkish lira spiked up to about than 3.60 last week, currently it's sitting on 3.52 as of right now (while writing this message). The reason for this spike wasn't because of anything that happened in Turkey, but it was due to the Brazilian president being accused of corruption. Turkey had nothing to do with this, but it still paid the price.
In order to avoid situations like this Turkey must shake off this so called political risk. And judging from the traction Turkey seems to have gained, it is slowly growing out of this sentiment. But this isn't easy, it's gaining momentum, but the internal problems with FETO and current state of alert are still cause for political risk. On top of that you got external political risks like Iraq and Syria and recently Qatar all are working against Turkey's favor on this issue.
Last week, there was this news all over Bloomberg about some famous economic analyst claiming that TL is going to reach 3.10 against the dollar by years end, but I wasn't able to find the source so I can't link it here. But these predictions are speculations, I hope this is true but not sure if that is correct of me. Because what needs to happen with TL is to keep it horizontal, it shouldn't lose or gain too much value against the dollar/euro etc. it needs to stay consistent.