The Turkish lira has fallen to another record low against the US dollar. In the meantime, 9.098 lira were available for one dollar on Wednesday. The currency has been under increasing pressure since the end of September after a key interest rate cut despite the high inflation rate.
In September inflation in Turkey was close to 20 percent
President Recep Tayyip Erdogan repeatedly puts pressure on the central bank and demands lower interest rates. He believes that high interest rates cause inflation, which contradicts current economics.
The decline in the lira accelerated on Monday after Erdogan indicated that a new military operation against the Kurdish militia YPG could be imminent in neighboring Syria. That would also lead to further tensions with the US, which supports the Kurdish militia in Syria.
Groceries are getting more and more expensive
Turkey has long struggled with high inflation. According to official figures, the annual rate in September was around 19.58 percent. Food in particular is becoming more and more expensive, the inflation rate for food and non-alcoholic beverages was recently around 29 percent, according to the statistics agency. Housing is also becoming more expensive – students are protesting against high rents.
Decline in the Turkish lira
The Turkish lira has fallen to another record low against the US dollar. In the meantime, 9.098 lira were available for one dollar on Wednesday. The currency has been under increasing pressure since the end of September after a key interest rate cut despite the high inflation rate. President Recep Tayyip Erdogan repeatedly puts pressure on the central bank and demands lower interest rates. He believes that high interest rates cause inflation, which contradicts current economics.
The decline in the lira accelerated on Monday after Erdogan indicated that a new military operation against the Kurdish militia YPG could be imminent in neighboring Syria. That would also lead to further tensions with the US, which supports the Kurdish militia in Syria.
Turkey has long struggled with high inflation. According to official figures, the annual rate in September was around 19.58 percent. Food in particular is becoming more and more expensive, the inflation rate for food and non-alcoholic beverages was recently around 29 percent, according to the statistics agency.
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