Turkey is a reminder and probably a precursor to other countries with currency depreciation.Turkish lira is almost down So far this year it was 45% against the dollar and plummeted by 20% in a week...Economists believe Turkey may be on the verge of hyperinflation year after year Consumer price index could exceed 30% in the coming months..
Experts have blamed the Central Bank of the Republic of Turkey for not raising interest rates, but people like Tal are suffering from the consequences of double-digit inflation. Tal, who works at a global coffee shop in Turkey (renamed to protect his identity), said: (Or $ 220). If you want to drink a large toffee nut latte, you have to pay about 25% of the amount you earned that day. ”
For those who have never experienced inflation like Tal lives in, he shared some of the dramatic changes in food prices. Boxes of vanilla sandwich cookies increased from 5.75 lira in September to 8.50 lira in November 2021. In many places, the price of infant formula has doubled. “People need to understand how bad the economy is here. I believe Bitcoin is the solution. Currently, over 5 million people in Turkey are investing in Bitcoin and cryptocurrencies.” Said Tal. “I’m trying to save as much money as possible on Bitcoin because Bitcoin is the best solution.”
Retirees and civil servants with limited monthly income Similar experience.. Due to the rapid rise in grocery prices, purchasing tomato paste, bread, yogurt, fruit juice and crackers costs more than 46 lira. For families living on a monthly income of 2,500 lira, eating alone is an exorbitant cost. Prime Minister Erdogan recently raised the salaries of many civil servants by nearly 30%, but this has done little to counter spiral inflation.
Soaring Turkey’s living costs have led to more protests and dissent in Turkey, which is known to suppress dissent and detain political opponents.Recently President Erdogan Detained Metin Garkan, A key member of a new opposition group, the Democracy and Progressive Party (DEVA), on suspicion of intelligence. Despite the threat of detention, civil servants will demonstrate in Diyarbakır, Izmir, Istanbul and Ankara. Mehmed Bosgain of the Public-Sector Trade Union Federation (KESK) The government’s economic policy is called a coup d’etat for the people, “I wake up every day when there is a price increase. I am in a situation where I cannot meet basic needs.”
To make matters worse, there is a shortage of imported medicines, medical devices and electronic devices. Bakeries can close because the ingredients for making bread are too expensive to obtain.Even in other cases Abdulkadir Selvi, a pro-government supporter of Turkey’s Hurriyet Daily News Expressing concern about the current economic course being taken, he said: [that] It cannot be ignored. “
The election is scheduled for June 2023 and there is no direct opposition. President Erdogan’s stance on low interest rates as a long-term solution to inflation, Conflicting factions have few options for letting Turkey’s central bank change its economic policy.President Erdogan of Turkey The recent GDP growth rate is 7.4% and the fact that the current account is in the black as a sign that his policy is working... In the US dollar, Turkey’s current account was a surplus of $ 1.7 billion in September 2021 and a deficit of $ 2.3 billion in the same month last year. The tourism industry is also booming in Turkey.
“We are rejecting the policy of drawing hot money at high interest rates,” Erdogan said in an interview with the state broadcaster. He expressed contempt for the IMF, saying, “Turkey will never again submit its political and economic future to the prescriptions of global economic leadership agencies such as the IMF and similar institutions.”Moreover Dismissal of Finance Minister Lütfi Elvan In response to his opposition to the low interest rate policy President Erdogan expressed hope that the economy will improve over time while maintaining low interest rates... “It’s because of interest rates, and it’s the result of inflation.” He called some of his “war of economic liberation” against Turkey price cuts, and the public to stay calm and “keep in common sense” when buying foreign currency. Asked for. , Pricing, and shopping.
For Tal, the price of a bike that I wanted to buy from a local dealer and get rid of for my family was 15,950 lira, more than 3,950 lira higher than in September. He decides to postpone the purchase. For now, in an era of economic instability in Turkey, Tal wants to buy and hold Bitcoin to maintain his savings and hope for a better future.
This is a guest post by SJWare.The opinions expressed are completely unique and are not necessarily BTC Inc or Bitcoin magazine..