Medya News
Daily News
Breaking News
Subscribe
  • Home
  • All News
  • Opinion
  • Kurdistan
  • Women
  • Politics
  • Human Rights
  • More
    • Audio Articles
    • Economy
    • Culture & Art
    • Ecology
    • Newsletter
    • Daily News
Youtube
PODCAST
No Result
View All Result
  • Home
  • All News
  • Opinion
  • Kurdistan
  • Women
  • Politics
  • Human Rights
  • More
    • Audio Articles
    • Economy
    • Culture & Art
    • Ecology
    • Newsletter
    • Daily News
Youtube
PODCAST
No Result
View All Result
Medya News

Turkish Lira in Freefall

8:31 pm 23/08/2020
A A
Turkish Lira in Freefall
Share post

The dollar rate has been steadily increasing for the past five years. The Dollar/Turkish Lira (TL) parity was only 1.90 in 2013. This Friday morning, it reached 7.38 for the first time ever, crossing the psychological threshold.

Turkey’s economy faces some very challenging times. Turkey’s economy is negatively affected by political and diplomatic developments.

Turkey’s annual inflation rate reached nearly twelve percent, according to official figures. Despite this rise, the dollar has continued to also rise. The lira is now the worst performing currency among the developing countries.

Structural problems such as the current account deficit and the tax system in the economy have made the Turkish lira even more fragile. Even as Turkey’s current account deficit has risen phenomenally, there has been a great decrease in the inflow of international investments.

The long-standing diplomatic tension with the USA has recently turned into a ‘sanction crisis’ and the USA’s embargo on Iran has also caused the lira to decline. Despite the increasing tension in foreign policy and the expectation of a rate hike, the Central Bank, which did not raise interest rates at the Monetary Policies meeting in July, caused a serious loss of confidence in the markets and reduced the impact of previous rate hikes.

There are high levels of private sector debt. As the dollar rate levels rise, and there is a possibility of continuation of the upward trend in inflation rates, Turkey is expected to be negatively affected by the credit crunch. Turkish companies’ foreign debts have turned into a heavy burden.

According to the Central Bank, the total foreign debts of companies in Turkey rose to US $ 242.5 billion in the first five months of the year. Each penny increase in the dollar exchange rate increases the total external debt amount by TL 4.2 billion.

According to many financial analysts, companies avoid making new investments due to the high interest rates, production costs and high inflation rates at a time when consumer demand has decreased. There is a possibility that with the credit crisis, Turkey will face a serious slow-down in growth.

 


Share post

Related Posts

Syrian rebel commander voted for Erdoğan in Turkish elections

Syrian rebel commander voted for Erdoğan in Turkish elections

May 28, 2023
Clashes erupt in Kurdish cities following Turkey’s presidential elections

Clashes erupt in Kurdish cities following Turkey’s presidential elections

May 28, 2023
Violence erupts in Turkey’s presidential election, celebrations turn deadly

Violence erupts in Turkey’s presidential election, celebrations turn deadly

May 28, 2023
Turkey’s pro-Kurdish opposition calls for strengthening of democratic politics amidst election turmoil

Turkey’s pro-Kurdish opposition calls for strengthening of democratic politics amidst election turmoil

May 28, 2023
HDP former co-chair Selahattin Demirtaş criticizes the ECHR

Kurdish politician defies defeat, calls for undeterred fight for democracy

May 28, 2023
Erdoğan slams Turkey’s LGBT community in first speech after election

Erdoğan slams Turkey’s LGBT community in first speech after election

May 28, 2023

Videos

Clashes erupt in Kurdish cities following Turkey’s presidential elections
POLITICS

Clashes erupt in Kurdish cities following Turkey’s presidential elections

May 28, 2023

All News

Syrian rebel commander voted for Erdoğan in Turkish elections

Clashes erupt in Kurdish cities following Turkey’s presidential elections

Violence erupts in Turkey’s presidential election, celebrations turn deadly

Turkey’s pro-Kurdish opposition calls for strengthening of democratic politics amidst election turmoil

Kurdish politician defies defeat, calls for undeterred fight for democracy

Erdoğan slams Turkey’s LGBT community in first speech after election

Medya News

Impressum

About us

Privacy Policy

Subscribe
Contact

 

No Result
View All Result
  • All News
  • Opinion
  • Kurdistan
  • Women
  • Politics
  • Human Rights
  • Ecology
  • Economy
  • Culture & Art
  • Daily News
  • Breaking News
  • Newsletter
  • Authors
  • Podcast

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT

Add New Playlist

Loading
Contact