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Turkey's in trouble. Again.
21/5/20 10:50![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
fridi"An assault on Turkey!"; "Dark forces are attacking the Turkish Lira!" Those are the headlines you could see around the government-friendly newspapers in Turkey these days. The reason, the Turkish currency has hit rock-bottom. Now a US dollar is traded for more than 7 Lira, something unseen in decades. The Lira has lost nearly 1/5 of its value since January, and that's very worrying.
Thus, Turkey's been heading toward a second recession within a couple of years. The previous one was in August 2018, caused by the row with the US caused by the detention of a controversial US pastor by Turkey. But now the reasons are far more complex. The main one, a mountain of debt. This year Turkey will have to cover public and private debt worth 170 billion dollars. This time the experts don't see a way out. The overall opinion is that Erdogan's government won't be able to cope.
USD vs TL
( Read more... )
Thus, Turkey's been heading toward a second recession within a couple of years. The previous one was in August 2018, caused by the row with the US caused by the detention of a controversial US pastor by Turkey. But now the reasons are far more complex. The main one, a mountain of debt. This year Turkey will have to cover public and private debt worth 170 billion dollars. This time the experts don't see a way out. The overall opinion is that Erdogan's government won't be able to cope.
USD vs TL
( Read more... )
