After a speech by Turkish President Erdogan on Tuesday, who advocated lowering interest rates despite rising inflation, Apple stopped selling its goods on Turkish soil. Although the Turkish version of the online Apple Store still works, none of the products can be added to the cart.
The reason is the instability of the Turkish currency, which fell by almost 15% on Tuesday after the president’s statement, which is the most in 20 years. The currency is now strengthening slowly, but is still well below the long-term average.
But the Turkish economy is not well in the long run. The decline in the value of the currency has not stopped since 2018 and is the result of tense relations with the West, large deficits and now also a refusal to raise interest rates. Foreign analysts describe the current interventions of the Turkish central bank as a perverse economic experiment.
It’s hard to say when Apple will resume sales because President Erdogan is adamant about his actions and believes that lowering interest rates could push rising inflation. Thus, a 15% drop in the value of the currency and inflation of 20 percent may not be the end, and Turkey may run into big trouble. Apple did not comment on the suspension of sales.
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