Inflation in Turkey accelerated to 21.3% in November. Of the 19.9 percent registered in the previous month, during the month only prices rose 3.5 percent. The magnitude of the acceleration in price growth is greater when we consider producer prices. Producer inflation hit 54.6% in November, largely due to an increase in the cost of purchasing raw materials and a weaker lira. Such high inflation in Turkey was last recorded in 2018, and before that, in the early 2000s, when the country was reaching a 20-year period, inflation reached tens of percent.
weather To stop the uncontrolled weakness of the harp The Central Bank of Ankara has intervened in the foreign exchange market in recent days. According to unofficial information from Bloomberg, the value of transactions made in just one day can reach one billion dollars. The interventions give hope to the stability of the exchange rate, since in the last three days the sale of the lira has practically stopped.
As Bloomberg commented, the Turkish bank’s decision to intervene shows that lawmakers are finally starting to get serious about the collapse of the local currency. Since the beginning of the year, the lira has lost almost half its value against the dollar.. The sale accelerated when the Central Bank, despite high inflation, decided to cut interest rates under pressure from President Recep Tayyip Erdogan.
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