Turkish Lira Plunges to Record Low due to Monetary Policies of President ErdoganDecember 7, 2021
Recently, forex traders around the world are debated on the declining position of the Turkish Lira. Many financial market experts claim that the current decline has been created due to the disruptive monetary policies of Turkish President Tayyib Erdogan. At the same time, some others argue that it is the result of severe cryptocurrency regulations in the region.
It is worth noting that Turkey acts as an important port between the western and eastern parts of the hemisphere. However, recently President Erdogan seems to have waged war against the dominance of USD in the international trade market. Timothy Ash from Bluebay claims that the recent decline of the Lira value is insane, and it is a direct reflection of the monetary policies of the Turkish government.
It is worth noting that the Turkish Lira has declined 40% against USD since last week. Further analysis of the currency reveals that the paperback has experienced a 1000% devaluation since the 2008 economic crash. At present, 1 Lire makes for 12.94 USD. However, the forex traders are still holding on to the currency native to Turkey, which shows high hopes for a $9.8 resistance level.
Many analysts hailing from the USA claim that the ideology of Economic independence does not hold value in the real world and claim that Turkey should revisit its position if it wishes to survive in the global economy. A former member of the Central Bank of Turkey named Semih Tumen has claimed that the Turkish government should consider the effect of inflation on the common man.
Turkey should also Accept Bitcoin like El Salvador, Says Michael Saylor
The CEO of MicroStrategy, Michael Saylor, has claimed in a new tweet that President Erdogan has no choice but to follow in the footsteps of El Salvador if it wishes to survive. Saylor claimed that the current issues of the country have arisen from the crypto negating policies. It is worth mentioning that Turkey has planned to ban crypto trading starting from the current year.
On the other hand, President Erdogan has been planning to introduce a digital Lira in the region to make up for the loss of blockchain innovation in the region. Saylor further added that Turkey would have to convert its entire working capital from TYR to USD if it wishes to retain any value at all in the international market. He further claimed that Turkey could also convert its entire working capital from TYR to USD to escape complete economic ruin.