A CIU Academic Gave Information about Measures to be Taken Against Increase in Foreign Currency
Dr. Hasan Rüstemoğlu, from the Department of Business Administration, Faculty of Economics and Administrative Sciences, Cyprus International University (CIU) said since the TRNC has a very high import economy, there is an increase in foreign exchange rates and people are affected from this adversely.
Rüstemoğlu explained that the increase in foreign exchange is reflected in the prices of goods and services and he stated that the purchasing power of the people is falling and the TRNC is deeply affected by the crises due to it is a small island.
Dr. Rüstemoğlu pointed out that the increase in foreign exchange rates has internal and external causes and he stated that the cost of inputs is increasing because of the fact that the home sales in the country are made with foreign currency and the construction materials are imported over foreign currency.
Rüstemoğlu also mentioned that production is being challenged due to price increases. He said "In this regard, the government needs to take measures to relieve both producers and consumers. Dr. Hasan Rüstemoğlu said as the Turkish Republic of Northern Cyprus (TRNC) leaves local production and it goes away from agriculture, it loses its commercial merchandise and an external commitment increases. For this reason, Hasan Rüstemoğlu proposed that additional measures should be taken against a possible economic crisis by the government. Rüstemoğlu suggested that some VAT rates could be deducted temporarily and the minimum salary is not sustainable, so the government needs to scrutinize the minimum salary again.
Dr. Hasan Rüstemoğlu said another way of strengthening the economy is to do savings. He explained that in addition to an increase in individual savings, it is important that the current government should make breakthroughs.