Read lock haven express online7/21/2023 ![]() In other policy considered to be unorthodox, economists say the government aggressively intervened in the markets to prop up the lira ahead of the elections, depleting Turkey's foreign currency reserves to keep the exchange rate under control. Inflation eased to 39.5% last month, according to official figures, but an independent group says the true number is more than double that. The bank has cut its key policy rate from around 19% in 2021 to 8.5% now, even as inflation hit a staggering 85% last year. Erdogan has exerted pressure on Turkey's central bank to lower borrowing costs. Conventional economic thinking - and the approach being taken by central banks around the world - calls for the opposite: rate hikes to control price spikes. Here's a look at the falling value of the lira, what lies ahead for the economy and how people have been affected: ERDOGAN'S ECONOMIC POLICIES Turkey has been plagued by a currency crisis and skyrocketing inflation since 2021, which economists say are the result of Erdogan's unorthodox belief that raising interest rates will increase inflation. Soon my income won't pay the rent," said Sureyya Usta, a 63-year-old who lives in Ankara. It has raised fears of even higher prices for people already struggling to afford basics like housing and food amid high inflation. The Turkish lira has now weakened by around 20% against the dollar since the start of the year. But lingering uncertainty over Erdogan's economic direction and an apparent move to loosen government controls of foreign currency exchanges have led Turkey's currency to plunge to record lows against the U.S. The longtime leader appointed an internationally respected former banker as finance and treasury minister and on Friday named a former co-CEO of a U.S.-based bank as head of the central bank. ANKARA, Turkey (AP) - Turkish President Recep Tayyip Erdogan won reelection last month despite a battered economy and a cost-of-living crisis that experts say are exacerbated by his unconventional economic policies. It's raised fears of even higher prices for people already struggling to afford basics like food and housing amid high inflation and even more financial uncertainty. But lingering uncertainty over Erdogan's economic direction and an apparent move to loosen government controls over foreign currency exchanges have led the Turkish lira to plunge to record lows against the U.S. The appointment is a sign that the longtime Turkish leader whose unconventional economic policies have been blamed for a cost-of-living crisis might change. And … so is Michael! He got a month off work and we're trying to work out how we can be in the same place at the same time for a while.Why Turkey's currency is crashing after Erdogan got reelected By SUZAN FRASER Associated Press ANKARA, Turkey (AP) - Turkish President Recep Tayyip Erdogan appointed an internationally respected former banker as finance and treasury minister after winning reelection. Those three months flew by and then I was off again, to Frankfurt, which is where I am now. He came to see me when he could, but his job means he's often working at weekends, so he couldn't make the flight very often. I could definitely get used to that kind of outdoor, beach lifestyle, but I didn't spend as much time getting to know California as I could have because I was flying back to see Michael every other weekend. So then I was posted to LA, which felt like a whole other country compared with the East Coast. It was really hard to leave for the next job, especially as I kind of met someone (!) More about Michael later. I did every tourist thing you can think of when I wasn't working, and must have spent most of my salary on eating out. Loved, loved, loved New York! It's like being in one big TV show, as everywhere looks just a little bit familiar. It's tough being away from home over Christmas, though, and Skype on Christmas Day wasn't really the same as being with everyone.įrom there I was on another three-month mission to oversee the set-up of the office in New York. But at least it was blue skies and white snow and not days on end of grey skies and rain, like at home. Winter was really hard, with minus 15 degrees in the mornings and dark really early in the evening. You know I'd always wanted to go, but maybe I was imagining Prague in spring when I used to talk about that. I went from London to Prague to set up a new regional office there. This job has turned out to be more of a whirlwind than I expected, but it's all good! Since we last saw each other I've unpacked my bags in four different cities. Not that I'm trying to make excuses for myself, it's been really hard to sit down and write, as I've been moving around so much. I've been meaning to write for ages and finally today I'm actually doing something about it. ![]()
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