As many people in Turkey struggle to survive amid the present economic climate of inflation, the Turkish lira has also indicated a bleak picture. This official currency of Turkey has plummeted to record lows lately.
We find this foreign exchange-related news about the Turkish lira alarming. We think our readers holding this currency and planning to exchange it with another currency like the US dollar can benefit from reading this report.
We believe they will understand how the latest currency crisis in Turkey will impact their foreign exchange-related activities this week.
Based on the report posted online by real-time financial news portal DailyInvestNews.com, the Turkish lira’s value dropped to a record low amid the deepening currency crisis in the territory based in Western Asia and the Middle East.
This currency closed the week at a new record low versus the US dollar, dropping eight percent in the foreign exchange markets last Friday, December 17. That event happened following the Turkish central bank’s action of cutting the nation’s interest rate by 100 basis points to 14 percent.
Such an expected interest rate cut is a component of the unorthodox economic program that Turkish President Tayyip Erdogan had set out, despite inflation in his country skyrocketing north of 21 percent.
Erdogan implemented his interest rate cut measure as what he called an economic battle of independence. The Turkish President eyes boosting job creation, exports, and foreign investment.
Erdogan and the Turkish Central Bank are reportedly insistent with their interest rate cut policy. Additionally, the Turkish leader’s move to push through 500 basis points of monetary easing since last September, including last Thursday’s massive interest rate cut, has witnessed inflation hit 21 percent.
The inflation rate is anticipated to cross the 30 percent mark next year. This event is forecast despite Erdogan discussing last week how he had decreased Turkey’s inflation rate to four percent before and promised the people to achieve that 2011 level again soon.
We think Turkish President Tayyip Erdogan’s persistence for a huge interest rate cut together with the Turkish Central Bank is ill-timed. We gathered that the majority of the citizens are grappling with adapting and surviving in their country due to the inflation problem.
Furthermore, we learned that these Turkish people see their earnings and savings get depleted at an alarming rate these days. President Erdogan’s latest policy has also made the Turkish lira become even less attractive to savers and investors.
Since the Turkish President’s policy has already been set in stone, we think his government should help the people adjust to these developments. We also want to suggest that the Turkish Government, especially its central bank, find a way to control the continued plunge of the Turkish lira.
We trust that President Erdogan’s administration is not deaf and blind to its citizens’ current plight. We believe they will address the Turkish lira and inflation-related problems soon, and we will monitor this development as this year draws to a close and we welcome a new year soon.