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Queues for bread and galloping inflation: The Turkish economy has crashed and the people are paying the price Israel today

2021-12-01T16:54:22.626Z


An attempt by the central bank to intervene also failed to stop the devaluation of the currency • "Our savings disappear and our purchasing power erodes," complain residents of Istanbul • Frustrated citizens stand in line for basic necessities, but Erdogan remains stubborn in his position


The sights seen from social networks in Turkey are heartbreaking: Hundreds of citizens are standing in the freezing cold of November in the big cities waiting to buy bread at a discounted price, after the price of bread jumped by tens of percent due to the country's huge inflation.

Today, for the first time in weeks, the Turkish lira recorded a slight increase after the Bank of Turkey intervened directly and sold transactions, but immediately afterwards there was another decline in the value of the currency.

The value of the Turkish lira has fallen by 47 percent since the beginning of the year and now stands at 14 pounds to one dollar.

The drop in the value of the pound has eroded the purchasing power of the Turkish public, more than 40 percent of whom earn close to the minimum wage, which stands at less than $ 300 a month.

The paradox is that while the purchasing power of the public is crumbling, the Turkish economy is actually growing.

In the last quarter, Turkey recorded a growth of 7.3 percent, but for the millions of Turks who live too close to the poverty line, it does not matter.

"Our purchasing power has plummeted, and our money and savings are no longer valued," 80-year-old retired banker from Istanbul Nekla Szek told the New York Times.

The merchants were also fatally injured by the disgraceful economic situation.

"I did not sell anything this morning. The whole area is deserted over the weekend and it is one hundred percent because of the fall of the pound against the dollar," Asoman Akos, owner of a clothing store on a commercial street in Istanbul, told the American newspaper.

Protesters arrested during a demonstration in Istanbul, Photo: AP

Erdogan himself remained firm in his positions that the low interest rate in the country should not be raised, an interest rate that led to the collapse of the value of the currency.

"As always, I remained of the opinion that interest rates should not be raised. Our economy is growing and we will soon see big deals that will bring in a lot of money and a place to work for the Turkish economy," Erdogan insisted in an interview with local media yesterday.

But despite his uncompromising stance, Erdogan has been hit hard in recent polls and his support is at a two-decade low.

The economic difficulty is gnawing at his base of support, the weakest sections of the country are the ones hardest hit by the crisis, the handiwork of the authoritarian president.

Various polls published in the country show that the Turkish president is losing elections directly against all the main candidates of the opposition.

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Source: israelhayom

All news articles on 2021-12-01

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