TODAY’S – Gov’t whistleblower: ErdoIan deliberately instigating dollar rise

Gov’t whistleblower: ErdoIan deliberately instigating dollar riseGovernment andldquodeep throatandrdquo Fuat Avni has claimed that President Recep Tayyip ErdoIan is purposely provoking the rise of the dollar against the Turkish lira in order to increase his dollar-based wealth and buy up companies hard on cash in a bid to launder illicit wealth currently held overseas.Fuat Avni, the pseudonym used by an unknown government whistleblower, claimed on his social media account on March 8 that the rise in the exchange rate of the dollar vis-andagrave-vis the Turkish lira is a direct manifestation of ErdoIanand#39s plans to launder what Avni says is illegal wealth.

According to Avni, this is why ErdoIan is repeatedly verbally attacking the Central Bank of Turkey its governor, Erdem BaII and the deputy prime minister in charge of the economy, Ali Babacan, demanding that the central bank lower interest rates. ErdoIanand#39s outspoken criticism of the central bank and economy officials has decreased confidence in the Turkish economy, with the dollar rising from around 216 against the lira to a current level of 260 since he became president in August.

President ErdoIan argues, contrary to textbook economic theory, that the cause of inflation is high interest rates, and he blames sluggish private sector investment on the current interest rate.Avni claimed that ErdoIanand#39s economic aisors plan to devalue the lira against the dollar before the general elections in June until the exchange rate reaches TL 295 per dollar, and TL 350 per dollar by the end of the year Avni then underlined that ErdoIanand#39s actual plan is to increase his andldquobillion dollarsand#39 worth of wealthandrdquo and that ErdoIan will inject the money into the Turkish economy at the point of an impending financial crisis, andldquoas he [ErdoIan] knows nobody asks about [the source of] money during times of crisis.

andrdquoThe next part of ErdoIanand#39s plan, according to Avni, is to buy up small firms that are indebted to international markets in dollars and will be increasingly pressed to make funds available to pay off debt in the upcoming months. These firms, which Avni claims have already been determined, will aid ErdoIanand#39s goal of laundering what Avni claims is illicit money held abroad.

Avni has also said that BaII and Babacan submitted their resignations to Prime Minister Ahmet DavutoIlu on Feb. 18 over the governmentand#39s handling of the Turkish banking watchdog agency, the Banking Regulation and Supervision Agency (BDDK) decision to give management control of 63 percent of the privileged shares of Turkeyand#39s Bank Asya to the Savings Deposit Insurance Fund (TMSF) in February.

According to Avni, DavutoIlu convened a meeting with Babacan and other government officials on Feb. 25 during which DavutoIlu told his subordinates that US investors were inquiring about the management takeover of Bank Asya, and that he asked how he was to explain the actions of the BDDK and the TMSF to investors.

Avni then pointed out that the government, as well as the executive boards of the BDDK and the TMSF, could have to pay billions of dollars in compensation for the action taken against Bank AsyaThe government whistleblower wrote that Babacan intervened, and told those present at the meeting that it wasnand#39t appropriate for government institutions to blame each other, and that they [the BDDK and the TMSF] cannot bankrupt a bank it received in a healthy state. Avni said that andldquoboth DavutoIlu and Babacan know that the next reports issued by credit rating agencies will be bad and that a [financial] crisis is at the doorstep.

andrdquo.

SOURCE: Today’s Zaman