‘Even Afghani outperformed TL,’ say Turkish citizens amid sharp lira depreciation
People at a currency exchange booth in Istanbul, Türkiye, May 15, 2023. (Reuters Photo)
As the Turkish lira hits a new low of ₺34 against the U.S. dollar, social media is abuzz with public reactions reflecting widespread concern and frustration. Turkish citizens expressed their views on the impact of the lira’s depreciation on daily life, investment prospects, and the broader economic outlook.
How people react to the Turkish lira’s decline on social media
- Comparison: “In the last five years, even currencies like the Afghan Afghani, Bangladeshi taka, Botswanan pula, and Aruba florin have gained value against the Turkish lira.”
- “We’ve now seen ₺34 against the dollar. Among emerging market currencies that have lost value against the dollar since the beginning of the year, the worst performers are Argentina, Türkiye, Mexico, and Brazil.”
- Rising cost: “Dollar at ₺34, bread at ₺10, simit at ₺15, a cup of tea at ₺20, retirement pension at ₺13,000, minimum wage at ₺17,000, and rent at ₺20,000. How is the Turkish public supposed to survive like this?”
- “It’s time for an update on gasoline prices. You gave away all the authority – now do you see what’s happening?”
- Economic policies: “The dollar has surpassed ₺34, and the minimum wage has fallen below $500. The AK Party has turned Türkiye into a fourth-world country with its industry, technology, and labor. A wage above $400 for a Turkish worker is too much!”
- “First, they distorted the price perception of essential foods like potatoes and onions, then by capping rent increases at 25%, they distorted the price perception of buildings and rent. Then, by limiting gold exports, they distorted the price perception of gold. Now, they’ve distorted the price perception of foreign exchange and the dollar. Türkiye’s fate is sealed.”
- Investment: “As long as the dollar remains at this level, attracting new and permanent investments will be challenging. If the dollar rises, everything from top to bottom will become more expensive, making it difficult to meet inflation targets. If it doesn’t rise, tough days will get even tougher for exporters. Recently, we’ve heard more about textile companies moving to or considering relocating to Egypt. We’re stuck in a deadlock, and it’s hard to see how we’ll get back on track.”
Rising exchange rates: Turkish lira hits 34 TL/USD
- Turkish lira continues to weaken, with the exchange rate briefly reaching a historic high of ₺34 per U.S. dollar, reflecting heightened concerns over Türkiye’s economic trajectory.
- As of 11:22 a.m., the dollar was trading at ₺33.995, and by 2:40 p.m., it had slightly increased to ₺34.01. The euro also saw fluctuations, peaking at ₺37.83 before adjusting to ₺37.79 in the afternoon.
- The lira has depreciated 0.8% against the dollar this week and 2.4% since the start of August, highlighting the ongoing challenges in stabilizing the currency.
| Currency | Selling Price (₺) | Change | Time |
|---|---|---|---|
| U.S dollar | 34.01 | +0.13% | 14:40 |
| Euro | 37.79 | -0.15% | 14:40 |
| British pound | 44.75 | +0.31% | 14:40 |
| 100 Japanese Yen | 23.37 | +0.15% | 14:37 |
| Saudi riyal | 9.10 | +0.04% | 14:37 |
| Norwegian krone | 3.22 | -0.14% | 14:39 |
| Danish krone | 5.09 | +0.06% | 14:39 |
| Australian dollar | 22.98 | +0.45% | 14:39 |
| Canadian dollar | 25.13 | +0.25% | 14:39 |
| Swedish krona | 3.32 | -0.26% | 14:39 |
Looking forward: What will happen
As the Turkish lira continues to struggle, attention will remain focused on both domestic economic policies and global influences, particularly the Fed’s decisions. Powell’s Jackson Hole speech on Friday could provide crucial guidance on the direction of global monetary policy, potentially impacting markets worldwide, including Türkiye.
