So what caused the Turkish lira to become such a worthless currency?
The turbulent situation in Turkey makes the currency exchange rate extremely unstable.
After Erdogan came to power in Turkey, many policies made people feel amazing and picturesque. In China, Turkey is also called Husky in China. Moreover, inexplicable street demonstrations and coups often break out in China, and the United States will cooperate with the European Union to impose sanctions on them from time to time. Let international investment institutions have low confidence in this country. As a potential developing country, even with China, its development prospect is very uncertain.
The unfavorable views of international investment institutions on the country, as well as the relatively poor economic situation and turbulent political situation in the country, will inevitably lead to extremely unstable currency exchange rate in the whole country.
The economic sanctions imposed by the United States are the main reason for the sharp decline of the Turkish lira.
An American lawyer was detained in Turkey on suspicion of terrorist attacks, and the United States demanded that the priest be extradited to the United States for trial. Under the guidance of Erdo? an, all Turkish high-level officials rejected the US proposal. The United States immediately began retaliatory economic sanctions under the guidance of Trump. From the national level, Turkey is doing the right thing, but from the economic point of view, the sanctions stick waved by the United States has caused extremely serious damage to Turkey's economy. Erdogan is mainly not like this.
Unreasonable economic policies have made domestic inflation in Turkey more and more serious, and the unemployment rate has hit record highs.
Although Erdogan has been the President of Turkey for many years, he is relatively in control of the domestic situation in Turkey. However, the Turkish parliament asked the central bank to cut interest rates to stimulate economic growth, which challenged the independence of the Turkish central bank. It also reduced the confidence of foreign investors in Turkey to some extent. Without foreign investment, Turkey's stagnant economy will be more difficult. Without foreign capital to revitalize the domestic economy, inflation in our country is getting more and more serious, which in turn leads to more and more unemployed people. Its negative effect is the further depreciation of the Turkish lira.
The serious depreciation of the Turkish lira is caused by many factors, but it is not a consequence that can be caused in a short time. Turkish President Erdogan's dream of a big country, coupled with Turkey's small national strength and the Sao operation that most people can't understand, may easily make a mess of the domestic economy. The dream of reviving Turkey cannot be realized by shouting slogans! If Erdogan had really done a good job, the Turkish lira would not have depreciated so spectacularly.