The Turkish lira is depreciating
According to Reuters and Bloomberg, inflation in Turkey now exceeds 73 percent, the worst in 24 years.
Turkey pounds on June 8 USA fell by another 0.9% against the dollar. Currently 1 dollars 16, 93 pounds. 1 euro was more than 18 pounds.
According to ReutersIn general, the pound has depreciated by 22 percent against the dollar this year alone.
According to the source, this is due to President Recep Tayyip Erdogan’s promises to reduce interest rates.
Erdogan said after a meeting of the Cabinet of Ministers on June 6, Turkey will not raise interest rates, on the contrary, rise in price will continue to reduce them in the face.
The lira depreciated by 44 percent last year alone, Reuters reports. Experts do this Erdogan government bad economic and monetarycredit They say it is related to politics.
The government believes that reducing interest rates can prevent inflation in the country through credit, exports and investment.
But experts say this is a policy that runs counter to economic rules.
According to Reuters and Bloomberg, inflation in Turkey now exceeds 73 percent, the worst in 24 years.
Prices for local products, electricity and gas, as well as most services have risen sharply in the country.
Although the government has increased the minimum wage by 50 percent, the population has more than doubled prices says it is not enough in the background.
Since last year, prices have risen in a number of cities and regions of the country, including Istanbul protest actions were held