Turkish Lira Crash – The Reason

Turkish Lira Crash – The Reason

21 percent, that is the official value of the Turkish inflation in November compared to the previous year. Inflation has not been this high in three years. Food has even become 27 percent more expensive during the period. However, the opposition and critical experts assume that inflation will be up to twice as high.

Turkish lira has lost more than 50% of its value since October 2021. But why is it? How did the answers for you!
1. Interest rate decisions do not go in the direction expected by foreign investors
2. The S-400 crisis that is causing trouble for US-Turkey relations
3. The refugee crisis caused by the Syrian civil war
4. Joe Biden, who advocates severe sanctions against Turkey, won the US elections on November 3, 2020
5. Increase in tension in foreign policy
(Political conflicts with France and Greece, statements by the USA and the EU)
6. The impact of the COVID-19 pandemic on the country’s economies.

Trade Team Forecast
The year 2022 does not look good for the Turkish lira. Turkey is a country that imports a lot but exports little. The country lives from tourism. Because of the current pandemic, there is also a panic situation there. By the 2023 elections, we think that $ 1 will be between 20-25. It currently looks like Recep Tayyip Erdogan won’t win the elections in 2023. In the long term, however, the country will certainly recover and the Turkish lira will regain stability. The country is very big and the education in the country is getting better and better.

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