Turkish lira falls to a record low - development becomes a danger for German companies
Created: 12/17/2021 Updated: 12/17/2021, 05:35 AM
From: Thomas Schmidtutz
The Turkish lira tumbled from one low to the next.
The development is now also affecting German companies.
Ankara - The Turkish lira has suffered the next low blow.
Despite the high inflation, the Turkish central bank cut the key rate from 15 to 14 percent on Thursday.
It was the fourth reduction in leverage in a row.
With the move expected by many economists, the downward pressure on the Turkish lira increased further.
On Thursday, the local currency was quoted at an exchange rate of 17 lira to the euro and 15 lira to the US dollar, at historic lows.
Since November, the lira has lost around a quarter of its value against the euro and the dollar, and since the beginning of the year it has fallen by around 50 percent - with far-reaching consequences.
Turkey: Groceries are becoming more and more expensive
Life for the Turks has become considerably more expensive in recent months due to the high inflation of around 21 percent and the weak currency.
Especially when it comes to food, the Turks have to dig deeper and deeper into their pockets.
The German economy is now seeing the development with growing concern.
With a trade volume of over 37 billion euros last year, Germany is the most important trading partner on the Bosporus.
Turkey: Lira decline depresses German exports
But in view of the currency development, German exports to Turkey are becoming more and more expensive.
In October alone, German exports to Turkey collapsed by around 30 percent, the President of the Foreign Trade Association (BG), Dirk Jandura, told
Handelsblatt
.
According to a survey by the DIHK, around 73 percent of German companies now see the exchange rate as one of the greatest risks when doing business in Turkey.
In addition to the currency development, the decline in the lira could now also hit German companies via bonds.
Because many Turkish companies are in debt abroad.
As the lira expires, the repayments that are due move further and further into the distance.
* Merkur.de is part of IPPEN.MEDIA.
