Can the forex loss in Turkey be recovered without sending the bill to the public? If first signs of the establishment of political normalization, democratization and rule of law emerge in a powerful way in Turkey, then the “shrunken” foreign currencies will come back to the system.
The Turkish Lira has devalued drastically against the dollar, reaching almost seven liras on the dollar. Ankara has invested almost $60 billion in currency interventions in 2020 to no avail, Financial Times reported on July 28.
A parking lot manager in eastern Turkey put a faulty bill up for sale at 1,500 times its value. Murat Kuştepe initially thought that the 50-lira bill was a fake, but put it up for sale at 75,000 Turkish Liras after realizing it was a rare faulty bill.
A jeweler in the southeastern province of Kahramanmaraş embroidered masks with gold. A local professional chamber chair said that they thought a regular mask created a visual disaccord in a wedding.
Turkey has revoked a requirement that Central Bank deputy governors have 10 years prior experience and dropped a rule that banks set aside 20 percent of annual profit, the Official Gazette showed on July 12. The provision, which envisages 20 percent of the bank's annual profit to be reserved as a reserve fund, has been repealed, the same decree said.
On the second anniversary of Turkey's transformation into a presidential system, the main opposition Republican People's Party (CHP) has prepared a report detailing how the country stands in the ensuing years, finding that the Turkish lira has lost four times its value since 2007.
The recent introduction of the Turkish Lira in towns of northern Syrian constitutes the final step in an assimilation policy enforced by Ankara in the region, journalist and Middle East expert Bereket Kar said. Reports have shown that cash and coins were brought in through the Turkish postal service (PTT).
Turkey's Central Bank has said that the removal of certain preventive measures imposed to combat the coronavirus (COVID-19) pandemic and the ensuing demand were the primary factors influencing inflation in June. According to the Central Bank's report, consumer prices went up 1.13 percent in June, rising 1.23 points and increasing 12.62 percent annually.
The trend in that started just before the presidential elections in 2018 and accelerated after the elections changed the chemistry of the economy in Turkey. Private sector in Turkey was restricted in every aspect. From pricing to sourcing, to investment licenses, all regulatory higher bodies worked to make the entrepreneurs feel that ‘the party state’ was watching them at every step.
Turkey's central bank said on June 19 it had used a funding facility for Chinese yuan for the first time under a prior swap agreement with the People's Bank of China. It added that the move would strengthen cooperation between Turkey and China, and that commercial banks would be able to add products related to trade and financial activities with a strategy based on the swap agreement.
A currency, that is losing value and is not the good money to its own citizens, cannot be the good money of another country. Most probably those who declared they have switched to the Turkish Lira in Syria will be doing their payments in Turkish Liras and - even if it may be only a few pennies - they will keep dollars to store the value of their accumulation.
CHP deputy Mehmet Bekaroğlu criticized the Turkey Wealth Fund (TVF) over not being transparent enough, saying that the fund "was becoming a parallel state." "It is really heading toward a parallel state, a parallel financial power. This is not right, and neither you nor the country benefit from it,” Bekaroğlu said during the meeting.
No matter how long or short the COVID-19 crisis lasts, a broad range of working masses, but especially the unskilled labor force will be the ones exceedingly affected. They will lose income and their jobs. As a result, inequality will spread on a mass scale and poverty will soar.
Turkey must restore its economic credibility if it hopes to secure needed foreign funding and return to growth, said President Recep Tayyip Erdoğan’s former economy czar who recently broke away and founded his own party. “Turkey must find that forex soon” but it needs to “reinstate the reputation and confidence in its economy management first,” Ali Babacan said.
Consumer prices in Turkey rose in May compared to the same month last year, the country's statistical authority said on June 3. According to the TÜİK data, the lowest annual increase in inflation was 2.98 percent in communication. Larger rises were seen in alcoholic beverages and tobacco with 21.41 percent.