#Turkey #Ankara #Coronavirus #ECONOMY
It is a new low point: On Friday, the rate of the Turkish currency broke the ten lira per euro mark. In the past three months it has already devalued by over 18 percent compared to the euro.
It is a new low point: On Friday, the rate of the Turkish currency broke the ten lira per euro mark. In the past three months it has already devalued by over 18 percent compared to the euro.
Analysts see several reasons for this. The Turkish economy has been thrown off balance by the corona pandemic. Imports are again significantly higher than exports, and inflation is very high at 11.9 percent in October.
In addition, investors doubt that the Turkish central bank is ready to stop the depreciation of the lira by increasing interest rates. Many emerging market currencies have recently benefited from investors' willingness to take risks, but the lira has come under pressure.
The only effective remedy for the fall in the lira would be a significant increase in the key interest rate. So far, however, the Turkish government does not seem ready for this. On Thursday, Turkish Finance Minister Berat Albayrak rejected such a move,
citing the negative consequences of higher interest rates for the economy. He explained the weakness of the lira, among other things, with the uncertainty caused by the US elections. What influence these will have is uncertain.
If the Democrat Joe Biden becomes the new president, he could possibly tighten sanctions against Turkey.
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