The Turkish lira has been falling for the sixth day in a row, according to the local publication Ahval. According to its experts, the Turkish currency plunged to 17:28 per dollar. In general, the value of the lira fell by 25% this year.
Turkish experts add that the July drop was the longest losing streak since mid-May. They also reminded us that the lira had lost almost 25% of its value this year. And last year, the Turkish currency depreciated by another 44%.
“Inflation in the country is 78.6%, which is the highest level since 1998,” Turkish experts added, traditionally criticizing the measures taken by Turkish President Recep Tayyip Erdogan. They also recalled that the Turkish president had fired three central bank governors since 2019. At the same time, Turkey has taken various measures to discourage companies and individuals from buying foreign currency. “Turkey has the highest inflation among emerging markets and industrialized countries. Interest rates in the country, net of inflation, are also the most negative in the world,” they add.
Let’s add that according to official Turkish statistics, the situation with the lira exchange rate is seriously affecting tourism. Hotel and restaurant prices rose by 80% year-to-date, ranking third in terms of overall inflation rates in Turkey. Such official data was provided by the Turkish Statistical Institute (TUIK), which announced the consumer price index (CPI) data for June. According to Turkish statistics, transport, food, and beverages, as well as prices at enterprises of the tourism industry, rose in price the most during the year – i.e. in hotels and restaurants.
Thus, transport prices rose by 123.37% in June compared to the same month last year, their growth was 10.59% for the month. In second place are food products – they showed a growth of 93.93% compared to last year. Hotels and restaurants are heavily dependent on the level of energy and food prices – so it is not surprising that they are the third most expensive. For a year, according to Turkish statistics, their prices have increased by 79.55%. Over the month, prices rose by 5.42%. Read the details at the link.