Business & Economy

The Turkish lira doubled and prices increased exponentially

The Turkish lira fell again against the US dollar, which will lead to more inflation, which has already reached about 70% in the month of April.
“The prices of basic commodities have multiplied by 4 times in Turkey,” said the Turkish economic analyst.
He also added that “the decline of the lira, if it continues in this way in the coming period, will constitute a greater burden on the Turkish treasury later.”
He explained that “the depreciation of the Turkish lira against foreign currencies mainly negatively affects some segments of society, especially the poor.”
He also pointed out that “this high cost is a global problem and for external reasons, but this rise in Turkey is mainly caused by the depreciation of the local currency against the US dollar.”
The exchange rate of the Turkish lira against the US dollar reached 14.95 yesterday, Friday, for the first time in nearly two months, before recording a slight increase, to reach its exchange rate today, 14.94.
The Turkish currency lost about 12% of its value this year, in addition to 44% it lost during the past year. This is largely due to the currency crisis caused by a series of unconventional interest rate cuts.
Last Thursday, data showed that the annual inflation rate in Turkey jumped to 69.97% at the end of April, which exceeds expectations and constitutes the highest level of inflation in two decades, driven by the Russian-Ukrainian conflict and the rise in commodity prices after the collapse of the Turkish lira late last year.

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