I am most certain many people around the globe are asking the following questions: “What is happening to the Turkish Lira? Why is it in steady decline against the dollar and could it recover sometime soon after all, or should we simply forget about investing in Turkey?” says Tolga Ertukel Director of Turkey Homes.
Needless to say, this is the worst time ever Turkish Lira has incurred in a long while and there are certainly solid reasons that have accumulated in time to paint the undesired picture we all see today.
To start off with, President Trump’s apparent and tough hostility against Turkey arising from the detention of a pastor of US nationality in this country and put into practice by Mr. Trump himself via new increased import tariffs on Turkish export goods have certainly triggered the fall of the lira against the dollar.
There are also underlying causes that have accumulated in time to bring us to the current situation to include the fact that “the confidence of financial investors in the economic competence of the Turkish authorities has been eroding for some time”. There are opinions on the international arena that the economy administration of the country could and should have displayed a better performance so as to reach the ambitious targets determined by the government, earlier.
Let’s not to forget that Turkey’s economy has also been caught in the crossfire between US and China, after US decided to sanction China and Russia so it could manipulate the world currency markets and oil prices.
Just to refresh our memories US pulled out of a very important peace accord signed by 5 UN security council members on Iran's nuclear energy program causing a strong negative impact on currencies and stock markets of emerging countries such as Turkey, Brazil, Malaysia, India and needless to say Iran.
Still we do predict things will start going back to normal soon. Sadly though, these moves by the US administration will not help anything except for manipulating world markets at the benefit of US and the dollar.
In fact, we see nowadays that some of the largest Asian powers are seeking ways to leave the dollar out of the game by resorting to alternative methods such as barter of goods to be used for payment among such countries.
As for Turkey Homes and its potential clients with prospects of buying properties in Turkey, there is certainly a benefit to refer to at this point as prospective clients will be able to get more for their money compared to a few weeks ago.
I hope this will help for the time being. I will further update about the topic and Turkey in the near future.
