“I want all of my citizens to keep their savings in our own currency and all of their business to do in our own currency,” he said in a speech in Istanbul. “Let’s not forget that unless we use our own money as a yardstick, we are doomed to doom. The Turkish lira, our money, is what we will use to move forward. Not with this or that foreign currency. “
Currently, the citizens of Turkey keep around half of their savings in foreign currencies and in gold. The loss of confidence in their own currency is currently unstoppable. The lira has lost 40 percent of its value, making it its blackest year in 20 years.
The inflation rate in Turkey rose to a staggering 36.08 percent in December. Experts also see the reason for the currency crisis and high inflation in the unorthodox monetary policy of the Turkish central bank. At Erdogan’s insistence, the latter has repeatedly cut its key interest rate, although economists consider an increase to be the appropriate answer.
The rapid fall in prices that goes hand in hand with inflation makes it more expensive to import goods into the country. In addition, there are comparatively high raw material prices on the world market. This is one of the reasons why the country is in a difficult economic situation, which is also reflected in high unemployment.