Nowadays, many countries try to reduce the value of the national currency when it is necessary. Importantly, they do it smoothly so that the decline looks as natural as possible. Otherwise, they may be added to the lists of currency manipulators. Yet, there are some states that do not even bother with such measures as their currencies have already dived deeper than the bottom of the ocean.
Perhaps, Turkey is likely to be first on the list of such countries. The hectic and irrational monetary policy of President Recep Erdogan is pushing the Turkish lira lower than any manipulations. What is more, a weaker lira is a real disaster for local exporters. When it seemed that the national currency could not dip lower, it turned out that it could. The Central Bank of the Republic of Turkey banned the use of cryptocurrencies for payments throughout the country. Cryptocurrencies will no longer be used as a means of payment. Notably, this decision was made in the wake of the growing popularity of cryptocurrencies in the country. The lira decreased markedly and the financial system saw the ineffectiveness of standard monetary policy tools.
Since the moment the Central Bank of the Republic of Turkey has lost its status of an independent financial regulator, it has been experiencing serious difficulties. In addition, in the last couple of years, Erdogan changes the heads of the central bank so often that there is no consistency in the financial system. Naturally, such an approach to monetary policy led to the weakening and high volatility of the Turkish lira, which caused the widespread use of cryptocurrency as a means of payment. Turkish citizens and organizations embraced it as a modern digital way to maintain purchasing power.
