Inflation in Turkey at highest level in 20 years: not only the population but also travelers feel the consequences

“And not only that: it is also the cause of the depreciation (depreciation, ed.) of the Turkish lira”, continues De Grauwe. It lost 45 percent of its value against the dollar last year, making it the world’s worst currency. “When that happens, everything you import becomes more expensive. In addition, it is no longer interesting for investors to invest in the lira, so they are withdrawing. Result of a capital flight: further depreciation, which further fuels inflation. And so the circle is complete.”

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