Deflation of the Turkish Economy, will the Turkish Lira continue to fall?

Bahroz Jaafar
Oil expert.

Using the toughest mechanism via the Turkish central bank to create a balance for stabilizing Turkish lira (T.L), but the slide of Turkish currency still continuing, in the second half of (2020), on 28 of October the price of (100$) reached to (820) (T.L), it shows that the Turkish currency has lost (24%) of its value opposite the US dollar in this year.

The reason behind sinking the (T.L) refers to decreasing the foreign investor in Turkey which reduces the foreign currencies in Turkey in general and dollar particularly; more than (85%) of the world's fiscal markets use the US dollar.

Moreover, the long-term problems of Turkey in the Mediterranean Sea and the Turkish constant threads on Greek and Cyprus have disconcerted investors to develop the investment process in Turkey. Likewise, the expansion of a great rate of (T.L) via the Turkish central bank and purchasing (110) billion dollars for the sake of keeping US dollar in the Turkish markets were the reason for (T.L) fall as Matin Erol say who is the economic and the fiscal market expert.

Also, the accumulation of the Turkish loans reached to (434) billion dollars in (2020). At the same time, Turkey attempts to raise the rate of interest from (7.5%) to (15%), consequently, the Turkish economy going worse.

Finally, the causes above are the real factors in the deflation of Turkish finance, economy and the loans as well. Turkey has to stop its aggressive relations in the White Sea particularly, and the neighbors generally due to surviving from its local crisis.

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