Erdogan declares war on the dollar!

In those days, Turkey is engaged in its final battle for financial and economic independence away from American tutelage, in the hope of an independent political decision. The United States is exerting economic and political pressure, using the strength of the economic dollar to hit the economy of any country trying to get out of the squadron. The political pressures began after the Arab Spring revolutions in 2011, when Erdogan's government sided with the Arab peoples in their revolutions, and this angered the decision makers in America, which Erdogan met with some economic measures to reduce dependence on the dollar as a reserve currency in anticipation of an expected economic and political war On his government from the US decision maker.

Increase Turkish gold reserves

The golden cover of money is the origin of the money before it gave up America in 1971. In 2011, Erdogan began obliging Turkish banks to make the tenth gold reserve in a general direction for the state to gradually replace gold. After the failure of the military coup in July 2016, Turkey withdrew its full 28 tons of gold from the US. The banks also responded to Erdogan's appeal and withdrew their gold reserves of 220 tons. The Turkish gold reserves reached 546 tons in 2017 from 110 tons in 2011, Where the golden reserve is $ 25 billion. In the same context, the Turkish Ministry of Finance issued in late 2017 gold bonds and gold leases. The result was the transfer of 75 tons of gold from houses to Turkish banks, as a kind of increase the golden cover of the Turkish lira against the dollar.

Liquidation of the Bank of Asia funded by Gulen

The Turkish government has tightened its grip on the Bank of Asia in 2015, which has proven to be involved in the financing of Fathallah Gulen as it seeks to dry up funding sources of the US-backed Gulen group and to prevent the organization from manipulating the Turkish stock and bond market or transferring money to its members from America and Europe. the bank.

Pastor Branson and Turkish Lira

Turkey arrested a US priest linked to the Fatah Gulen terrorist group in October 2016 three months after the failed coup, which was met by the arrest of the former deputy director of the Turkish bank Hakan Atila in March 2017, on charges of circumventing US sanctions on Iran in 2012, where he A state-run bank created by the state to sell gold to Iran for gas, to circumvent US sanctions on Iran. Although the bank stopped selling gold to Iran after America closed the gap, the court convicted him of politicizing the case.

With Turkey's refusal to release the pastor with Gulen, America punished Hakan Atila, head of the former Turkish bank of Khalk, to 32 months in prison. The US prosecution also appealed and imposed a 20-year prison sentence, prompting Turkey to put Bishop Branson under house arrest and not release him , Only after the US prosecution withdrew his appeal against the Turkish banker.

In August 2018, the US president increased tariffs against Turkish exports of aluminum and steel in a clear declaration of economic war, which led to a significant drop in the price of the Turkish lira from 5 to 7 lira per dollar. Despite the great shock of the Turkish currency, Erdogan insisted on his conditions for the release of the Turkish banker, especially after Fathallah Gulen Shahid Zour, who claimed that Erdogan, his government and his family were bribed in exchange for circumventing US sanctions against Iran as a form of political pressure Ali Erdogan.

After the insistence of the Turkish side on his position occurred a breakthrough in the crisis in October 2018, and the parole was released from the US pastor, which met with America to withdraw the US prosecution to appeal against the Turkish banker, which is expected to be released in May 2019.

Deal with local currency with Russia, China, Iran and India

The Turkish government began coordinating with the regional powers in Asia such as China, India, Russia and Iran to deal with local currencies to ease the pressure on the dollar reserves of the countries, which resulted in the import of Russian wheat from Russian ruble. It was also agreed to pay the value of the deal S-400 missiles and Russian gas in Turkish lira or Russian ruble.

In the same context, Russia, Iran and Turkey agreed in 2017 to start dealing with them in local currencies. India also agreed to buy the advanced Russian S-400 missile system in the Russian ruble. In 2017, China also launched a yuan-denominated oil exchange that allows Russian gas to be bought in Chinese yuan, in cooperation that reflects the coordination of forces opposed to the dominance of the US dollar on world trade.

Expansion of Islamic banks and issuance of Islamic sukuk

In the last ten years, the Turkish financial system has expanded to the opening of Islamic banks. It has also opened a bank of plantations and the cessation of the two branches of Islamic transactions. The Islamic banking system is safe against market fluctuations resulting from the illiquidity of capital as witnessed by the world following the global financial crisis in 2008, Sukuk in US dollars and euros were issued to diversify the government's financial issuances. In late 2018, the Turkish government announced the launch of euro bonds to ease pressure on the dollar.

Participation in the Silk Road and the transfer of Russian gas

Erdoğan invested Turkey's territorial location between West Asia and Eastern Europe in a good way. Erdogan opened the Baku-Tbilisi-Kars railway project in 2017, connecting Turkey to China. The train from China to Kazakhstan then crosses the Caspian Sea in terms of Baku, Azerbaijan, Karez in eastern Turkey, to join Turkey's rail network to Istanbul. The Silk Road is expected to shorten the transport time between China and Europe to just 15 days.

Turkey has agreed to supply pipelines to transport Russian and Azeri gas to Europe via its territory. This geopolitical link between Turkey and Europe contributes to Turkey as a corridor for Asian energy supply and trade to Europe, prompting countries such as China and Russia to contribute to Turkey's economic development Which gives the Turkish economy a guarantee certificate for European banks to participate in infrastructure projects in Turkey.

Tangle of Turkish economy in Europe

In August 2018, as a result of the interdependence of the Turkish financial system with the European, and with the significant decline in the Turkish lira in the midst of the US-Turkish crisis, American, European and Asian stocks fell directly, and the German and European indices fell to the worst since the referendum on Britain's exit from the European Union in 2016.

Turkish companies are dependent on European short-term loans of about 200 billion euros, most of which are from Spanish, Italian, German and French banks. This prompted German Chancellor Merkel and her finance minister to intervene to support Turkey politically. Turkey's strong economy is important for Europe.

The Turkish government is aware that Europe will not allow the Turkish financial system to vibrate because of the great correlation between the Turkish and European financial systems. European banks are investing in several large infrastructure projects in Turkey, forcing European governments to maintain Turkey's political and economic stability. Turkish financial obligations towards European banks.

The specter of the euro crisis haunts European banks

The European banking sector fears a crisis in the Turkish economy and seeks to support it in various ways, despite political differences, fearing the possibility of a repeat of the euro crisis again when Greece, Spain, Portugal, Ireland and Cyprus lagged behind in 2009 after the global financial crisis in 2008, Including the euro zone, but with hundreds of billions of bailouts that have affected growth in several European countries for years because the Eurozone economy is highly intertwined.

Do you end the curse of the dollar

Despite the political and economic conditions that plague Turkey such as the Kurdish state that America is trying to establish in the Syrian north through the recent Turkish lira crisis, the economic and political alternatives produced by Erdogan throughout his reign give flexibility to the Turkish legislator and help the independence of Turkey's political decision away from the impact of the dollar. , And with the completion of the Turkish financial system, which aims to reduce the dependence on the US dollar, we will see the emergence of strong regional influence in the European and European international environment significantly in the coming period.