Taxes and hikes are flying around. Motor Vehicle Tax doubled. Corporate Tax was increased to 25 percent and to financial institutions to 30 percent. And this is just the beginning…
In countries like ours, the current account deficit weakens the economy, but the budget deficit sinks. Here they are trying to collect that budget.
Let me explain it this way. Last year, the budget was not enough and the additional budget was implemented. The borrowing limits in the budget have been exceeded. According to the law, the Treasury should not borrow more. Well take it! It’s law, it’s right, it’s law, it’s all in vain. He borrowed at his own will, and did not ask anyone.
As a matter of fact, that budget had a surplus of 124 billion liras in the first five months of 2022.
The budget has given a deficit of 263 billion liras in the same period of 2023… Imagine the gravity of it…
Promised election promises ruined the budget… The EYT regulation that was implemented, the increase in pensions, holiday bonuses, 3600 additional indicator increases, free natural gas to houses, a huge increase in the minimum wage, public workers and civil servants salary increases have not yet been reflected in the budget figures…
Wait, wait, earthquake spending continues. If you remember, the official loss was announced as 103 billion dollars. His loss will spread over the years…
Bass coins…
You will miss the big picture if you see it only as a state fundraiser… In fact, they apply the principle of surprise and surprise your citizens with sweet, small, romantic surprises.
Otherwise, every country does to support its citizens in order not to victimize their nation. It’s very classic. It has no taste.
It will be interesting, but there is also a big deficit in the Central Bank… The very smart ones went to the bottom in order to support the Treasury with absurd calculations.
My main curiosity is when the new President Gaye Ms. saw the scene, “No more!” what size is his cry…
He must have understood what kind of circus he fell into, how the Ferris wheel spins, how things work in Turkey…
Under normal circumstances, most of the money deposited in the Central Bank consists of deposited money. As a matter of fact, all of our Central Bank’s money is gross, with almost zero reserves.
When you, me, companies deposit money in the bank, the Central Bank takes a certain amount of money in the name of the reserve money… It returns it to the banks in the same way when withdrawing…
So what did the Central Bank do? When the dollar increased, these came to me at this cost, now the dollar has increased this much, because I made a profit, it entered into an interesting account.
Why was it important to make a profit? Because he sends the profit to the treasury at the beginning of the year…
Now, there has been a loss of 600 billion liras in the valuation account of the Central Bank’s balance sheet.
The Treasury support applied in the Currency Protected will be transferred to the Central Bank. Add those losses… What is the income of the Central Bank? There will be no limit for the money he will print this year…
Planned level 26-27
The explosion of the current account deficit, with the Turkish Lira being used artificially until the elections, spoiled the business. How would he be dealt with? As a matter of fact, the dollar rate was first released, and then the Central Bank started buying.
This chart points us between 26-27 during the summer. As a matter of fact, the estimates below this level, which are estimated in foreign reports, are based on a certain calculation.
They like to calculate the dollar level with the inflation-based real exchange rate index. There, the Turkish Lira is only at the level of 25. So why is the base of an administration like us, which loves to suppress the currency, higher than foreign reports?
Investors in Gulf countries and Europe demand high exchange rates to bring their money to Turkey so that they can leave the table profitably. Let them sell it high, and not write a currency loss on it after they get a return.
When Turkey is in serious need of foreign currency, it has to give whatever they want… Even if the markets will be stagnant and calm in the short term, the story will start again in the autumn… Unless something strange happens again in the meantime!
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