The Turkish Lira is in a free fall due to the central bank’s decision to adhere to the dictates of Turkish Recep Erdogan, German newspaper Handelsblatt argues.
“The price of the Turkish lira is breaking one negative record after another. For the first time in history, today (April 9) the euro is worth more than five liras. The Turkish currency also recorded a new negative record in relation to the US dollar”, the paper notes.
Experts attribute the drop mainly to the high current account deficit and low real interest rates.
Even though economic growth has strengthened, the Turkish central bank does not offset the low real interest rate with significant interest rate hikes but is adopting requests from the Turkish President. Pundits warn of the economy “burning out”, as cheap loans outweigh demand and may lead to stagnation or even recession, the German newspaper notes.
Turkey is one of the main Mediterranean competitors of Greece’s tourism industry but it has been hit strongly by terrorism and political instability.
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RELATED TOPICS: Greece, Greek tourism news, Tourism in Greece, Greek islands, Hotels in Greece, Travel to Greece, Greek destinations , Greek travel market, Greek tourism statistics, Greek tourism report
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Source: protothema.gr
