Devaluation in Turkey: Lira hits new historic low against dollar and euro

This Turkish lira This is marked on Thursday New all-time lows against the US dollar and the euro When exchanged at more than 30 units per dollar, the European currency sold for 33.09 lira.

The devaluation of the lira, which has already been lost around 30% Its price and other in 2022 40%The Turkish economic press attributed it to him Increased demand for dollars in global markets and continued political uncertainty in Turkey.

Ten years ago, in January 2014, the lira was trading at 2.2 units per dollar.

Analysts also warn that the lira is likely to depreciate Increase inflationWhich was already over in 2023 64% And that represents a big problem for the country.

Turkey has consistently recorded double-digit inflation since the end of 2019, and the central bank has implemented rate hikes over the past six months to try to control price increases.

The central bank has fixed the inflation rate for 2024 36% However, many economists doubt whether this figure will be reached.

Turkey’s inflation rate rose in December 64.77% On an annual basis, 2.79 points higher (61.98%) than the previous month, which closed in 2023. The highest level of the entire yearThe Turkish State Statistics Institute (Türkstat) reported last week.

The hotels and restaurants sector was the first contributor to the strong general increase in prices, with a 93.2%while the smallest increase was 40.4%In the housing sector.

Annual price growth accelerated in December, contrasting with a slowdown on a month-on-month basis, which analysts attributed to the first effects of monetary policy tightening that began in June.

The Consumer Price Index (CPI) increased as compared to November 2.93%Less than the month-on-month increase recorded that month, no 3.28% (compared to October).

The year-on-year rate of inflation was converted with it in December 65% Forecasted by the Central Bank of Turkey.

On the other hand, analysts agree that 49% hike in minimum wage Starting on January 1, 2024, the Turkish government announced on December 27, that would mean a further increase in inflation.

Civil servants and pensioners will get adjustment in their income 31.5%The last semester average of last year is calculated based on inflation, which was 37.5%.

Opposition parties accuse the government of deliberately understating the inflation rate so that salaries do not have to rise so much.

Official annual inflation statistics published by Turkstate is much less than 127% Considered by ENAG, an independent group of academics and economists.

(with information from EFE)