The Turkish lira continues nosediving to extremely low levels, breaking one record low after another. The currency has already slumped to its all-time low, exceeding the level of 16 lire for one US dollar.
Turkey’s President Recep Erdogan still believes that he is a great economist and that a miracle will happen one day or another. On the one hand, he has managed to take control over all the functions of the country’s financial regulator. On the other hand, he has destroyed the local economy and the national currency. Economic problems of the countries with an authoritarian regime are always the same. Once one leader supposes himself to be a genius in economics, the country faces an unprecedented rise in prices, a deep depreciation in its national currency as well as a growing number of the poor and other problems. Under the presidency of Recep Erdogan, Turkey has been suffering the results of his actions for several years already. The country’s inflation rate has exceeded even the worst predictions. Meanwhile, the lira is hovering near its all-time low and the central bank is ready to implement any plan of the president.
As a result, the national currency has been dropping for many years. Notably, this year, it has shown the worst dynamic. In February, one US dollar cost just 6.9 lire. Since then, the lira has tumbled by more than 120%. In addition, from March to August, Turkey’s key interest rate was unchanged at 19%.
