Turkey’s central bank is scrambling to boost the country’s rising currency, the lira, as rising prices have forced Turks to buy essentials and vent their frustrations with the government.
How did this happen: President Recep Tayyip Erdoan has pressured the central bank to cut interest rates this year, while the lira has lost nearly half its value against the dollar. He has long claimed, contrary to economic conservatism, that low rates limit inflation.
Running news: He replaced his more mainstream finance minister with a loyal one on Thursday, causing the lira to fall further, and continued to call for additional rate cuts.
- Meanwhile, the central bank is selling off foreign reserves to contain the lira crisis, but can burn through your dollars quite early. Warning A wider financial crisis is brewing.
call of opposition Despite threats of arrest, this has been noticed in many cities.
- Polls show that Erdoan’s popularity continues to decline and that he is behind potential opponents such as Istanbul Mayor Ekrem Imamoglu in a fictional presidential matchup.
- yes but: Elections are not due in Turkey until June 2023. Meanwhile, Erdoan insisted in a televised address last week that Turkey’s unconventional economic policies would not change.