The population suffers from a very high price, which has prompted the government to increase the minimum wage by 3 times in 2022 (Getty)
Although Ankara has tried to implement new policies to tighten control over the local currency exchange rate, it has failed Turkish Liras up to a new all-time low of 18.7 vs American Dollar Today, Friday, it continues its wave of losses this year, which has exceeded 29%.
The lira fell 44% in 2021 for reasons, the most important of which is a series of steep interest cuts despite high inflation, according to Reuters data.
The currency has become less influenced by monetary policy decisions thanks to a protection program Deposits are in sterling From currency depreciation and indirect sales of foreign currency by the government to the market.
The lira has been relatively stable since August, despite interest rates being cut again by 500 basis points to 9% this year, despite inflation approaching 85%.
This comes after last Tuesday’s increase in demand for Turkish Liras On the Moscow Stock Exchange – Russia’s largest stock exchange – by 17 times in 2022 compared to last year, according to the “Anatolia” agency.
The chairman of the board of directors of the Moscow Exchange Yuri Denisov said that the country’s demand for currencies of friendly countries is growing rapidly. Denisov confirmed, in a statement to reporters on Tuesday, that the share of friendly countries’ currencies on the Moscow Stock Exchange has increased 70-fold this year.
He added, “Demand for the (Chinese) yuan increased 41-fold, the Turkish lira 17-fold and the Kazakh tenge 13-fold,” and the Russian official continued, explaining, “The dollar’s share in the spot market has decreased by half”.
Yesterday, Thursday, President Recep Tayyip Erdogan announced the increase of the minimum wage in Turkey, which has been facing inflation of more than 84% in one year, for the third time this year, to reach 8,500 lira Turkish (about $455) starting January 1st. While over 40% of Turks live on the minimum wage.
The minimum wage was 2,826 Turkish lira at the end of December 2021, less than $300 during that period. It was raised to 4,253 lire in January 2022, and then to 5,500 in July, a level insufficient to live in large cities such as Istanbul, according to monitoring by the “Agence France Presse” agency.
Consumer price increases in Turkey slowed in November for the first time since May 2021, recording 84.4% year-on-year, compared to 85.5% the previous month, according to official data. But a group of independent economists said the actual rate of inflation was more than double.
