Sunday, March 15, 2015

Turkey's lowering currency


The cost of imported goods is rising because of the falling currency, which is causing inflation to rise. As the Turkish central bank is determine to stabilize the currency the president Mr. Erdogan is desperate for growth to increase since and election is approaching. There has been an ongoing battle between the central bank and Erdogan because of contradicting views and accusations, but the facts still show a declining currency due that may have some influence of Mr. Erogan ideas.

4 comments:

ggsikari said...

I think the focus should be on stabilizing the currency rather than fulfilling political agendas.

At the same time a falling currency means that exports become more desirable, so maybe Turkey could focus there to make itself competitive in international markets.

Anonymous said...

I would agree that the country should focus on economic stability over political agendas or what will get the current president and his party the most success when the election comes around.

With a falling currency, the central bank should look to shrink the money supply in an effort to fend off inflation and look to strengthen the currency.

Additionally, I agree that because of the weakened currency, exports could have a strong or helpful role in stabilizing the Turkish currency.

Unknown said...
This comment has been removed by the author.
Unknown said...

I agree that Turkey should focus on exporting more goods, especially since imports are becoming more expensive. It will help their economy and currency.