Lira Crisis Like a Tsunami for TRNC: Erhurman

Prime Minister Tufan Erhurman has conveyed to Turkish officials how and to what degree the decline of the Turkish Lira has affected the Turkish Cypriots. The issue has had a greater effect on the Turkish Cypriot community than Turkey, he said.

Speaking on KibrisTV, Erhurman said “The influence of the currency decline is like a wind in Turkey while in Cyprus it is like a tsunami”.

The prime minister went on to say that efforts to reduce the consequences of this development continue. On Wednesday, he held various meetings with economic platforms in the TRNC and other officials as well as with the Ministries of Economy and Finance, he said.

Erhurman stated that this is not the first time that similar cases had been reflected in the TRNC due to the devaluation of the lira and noted that a fund must be created as a buffer against this and similar events to be faced.

North Cyprus News - Turkish LiraHe also said that economy specialists stated that the adoption of Euro in place of the Turkish Lira in the TRNC will not solve all the problems the country faces and added that “saying that adopting the Euro could solve all our problems is not a good approach”.

Two days ago, Erhurman stated that radical measures for the economy were being considered, hinting at the possibility of adopting a currency other than the Turkish lira.

Turkish daily Hurriyet reported that Turkey’s Central Bank put up its key lending rate on May 23 in a bid to control inflation, stem an outflow of capital from the country and support the embattled currency.

After the Bank’s monetary policy committee held an emergency meeting, it announced that it was raising the rate from 13.5 percent to 16.5 percent,. The lira rallied to regain some of its value. It rose to around 4.58 against the dollar, after it had fallen to over 4.80 per dollar, down about 5 percent since Tuesday.

Kibris, Hurriyet

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