Turkey is printing lira by funding budget via central bank – columnist

0 Comments

Turkey will use 94 billion liras ($16.5 billion) in profits and special reserves of the central bank to help pay for a spending splurge and a slump in revenue, economist and columnist Uğur Gürses said.

The central bank has already provided its profits for 2018 of 38.1 billion liras and now the government wants to use 46 billion liras that includes money set aside by the bank for emergencies, Gürses said on his website.

The transfer of the capital is equivalent to printing money and will do the economy no good at all, Gürses said. There are many previous examples around the world to back this up, he said.

Categories:
See LinkedIn profile: https://www.linkedin.com/in/arturdziedzic/