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Original caption: The stock market suffered an “earthquake” twice a day, Turkey’s prices soared, the currency plummeted
On the 22nd, local time, the Istanbul Index of Turkey fell 6.65% at the opening of the market The Istanbul Stock Exchange announced the activation of the circuit breaker mechanism, which continued to be broken until 10:30 in the morning of the same day.However, after the stock market resumed trading at 10:30, it still fell sharply, dropping to 7%, triggering the circuit breaker again.
Turkey’s stock market suffered an “earthquake” and exploded twice in one day
As of 12:20 local time, the Istanbul index has fallen 9.5%. If the dip expands to 10% that day, the third breaker will trip. This is the first time a circuit breaker has tripped since the Turkish stock market introduced a circuit breaker in October 2020.
At 12:20 local time, the Istanbul index has fallen 9.5%, if the drop expands to 10% that day, the third circuit breaker will trip. This is the first time a circuit breaker has tripped since the Turkish stock market introduced a circuit breaker mechanism in October 2020.
In the early morning of the 22nd, the exchange rate of the Turkish lira against the US dollar plummeted, dropping 15% at a time. It set the biggest drop since August 2018. Analysts said the removal of Turkey’s former central bank governor Abar was the main reason for the lira’s slide. In the early morning of March 20 local time, the Turkish government issued an official announcement signed by President Erdogan, announcing the appointment of Kafcioglu as the new governor of the Central Bank of Turkey, and the former governor Abar was removed from office.
Prices soar and the currency plummets Common peopleMoaning
Prices have skyrocketed and currencies have plummeted, and the people of Turkey have complained about this. Analysts are concerned that the Turkish economy may face more tests in the future.
Turkish locals are used to shopping in the bazaar, because the fruits and vegetables here are relatively fresher and the prices are cheaper, but even in the bazaar, local people can still clearly feel the increase in food prices, for example, life The price of eggs, one of the necessities, has almost doubled in the last year.
Citizens of Istanbul:
Almost everything has gone up, olives, cheese and butter … we can no longer afford butter, because the price is very high, everything is very expensive now, and now we are very anxious. I am 74 years old and I have never seen such high prices in my life.
Almost everything has gone up, olives, cheese and butter … We can no longer afford butter, because the price is very high, everything is very expensive now, and now we are very anxious. I am 74 years old and I have never seen such high prices in my life.
Citizens of Istanbul:
I only bought 3 aubergines. I bought them one by one in my family. There is nothing to say. I can no longer buy them pound for pound like before. Now I have to plan carefully.
I only bought 3 aubergines. I bought them one by one in my family. There is nothing to say. I can no longer buy them pound for pound like before. Now I have to plan carefully.
According to data released by the Turkish Statistics Agency, in January this year, Turkish food prices increased by 18% year-on-year. The price of vegetable baskets is constantly increasing and small vendors have a hard time.
IstanbulFarm productsBazaar vendors:
The high prices scared off the common people. Also, due to the epidemic, fewer people reached the market and our business has really taken a hit.
The high prices scared off the common people. Also, due to the epidemic, fewer people made it to the market and our business has really taken a hit.
Food prices are constantly rising, inflation risks are intensifying
Analysts believe that the imbalance between supply and demand of food production, the sluggish economy under the epidemic and the recent general increase in world food prices have caused Turkish food prices to rise. Rising food prices have also increased the risk of inflation.
Turkish economist Elhan Aslanaoglu:
When people suffer from inflation and unemployment, their real income will fall. In the epidemic situation, people’s spending on food is increasing. When food prices continue to rise, people’s real inflation rate will be higher.
When people suffer from inflation and unemployment, their real income will fall. In the epidemic situation, people’s spending on food is increasing. When food prices continue to rise, people’s real inflation rate will be higher.
To control prices and curb inflation, on March 18 local time, the Central Bank of Turkey announced that it would raise the benchmark interest rate from 17% to 19%. But just two days later, in the early morning hours of March 20 local time, the former central bank governor Abar was removed from office. As soon as it became known that market sentiment was frustrated, the Turkish lira plunged 15% in the early morning of March. 22 local time, a record since 2018. The biggest drop since August. Analysts are concerned that rising prices, currency devaluation, coupled with the weak recovery of various industries under the epidemic, the Turkish economy may face more challenges in the future.
（Headquarters reporterChen Huihui)
(Edited by Feng Shuqi)
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