Turkish lira in freefall over Erdogan's 'unorthodox' inflation theory
DW, 15 Apr 2021
In Turkey, the coronavirus pandemic weighs on an already ailing economy. The Turkish lira plunged to almost record-levels after President Erdogan fired his third central-bank chief in two years ... to install a like-minded critic of high interest rates. A rate decision is due today.
Restaurant manager Rengin Atac is at his wits end. The lockdown forced him to shut his business with its 15 employees for months, and now into Ramadan as well - because of rising coronavirus infection numbers. To make matters worse, inflation is running at a rate of 16 percent per month.
A lot of Turks have lost faith in their economy. Many are unemployed and can barely afford anything. As the lira's value plummets, shopkeepers and bakers are forced to constantly raise their prices. Flour and other ingredients are becoming more expensive by the day. The pandemic has also kept tourists away, which for many was their main source of income.
Turkish President Recep Tayyip Erdogan, Turkish president says he is "determined to bring the rising inflation back to single digits."
But it isn't the first time Erdogan proclaimed that, and the situation still hasn't improved. Will his new central bank chief really be the game changer everyone hopes for?
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