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Ozgur Akbas, a tobacco shop owner in Istanbul, Turkey, participated in organizing a demonstration last month, protesting what he described as “unfair” rules imposed on merchants due to the Corona virus.
“Many of my friends have stopped working. Some of them are on the verge of suicide,” the New York Times was quoted as saying by him.
The Turks have been battling currency devaluation and rising inflation of more than ten percent since Turkey hit the epidemic last March, exacerbating the recession in the country.
Nine months later, when the second wave of the Corona virus swept through Turkey, the New York Times says there are signs that a large portion of the population is suffering from rising debt and starvation.
In its survey, “Metropol Research” indicated that 25 percent of respondents said they could not meet their basic needs. Commenting on this, Akbas says, “People are about to explode,” indicating that he sees this among his customers.
President Recep Tayyip Erdogan, who attracted attention this year at home and abroad with aggressive policies and military interventions, faces a challenge represented in an economy recovering from the fallout from the Coronavirus and grappling with inflation of more than ten percent. cent, and also the fall of the Turkish lira to record levels.
The Turkish government admitted that it had reduced the extent of the spread of the Corona virus in Turkey by not registering cases that showed no symptoms, and new data revealed record levels of infection in the country.
The Turkish lira is the worst performer of emerging market currencies this year, falling more than 30 percent against the dollar due to Western sanctions on Turkey, depletion of foreign reserves, high inflation and monetary independence.
Last September, Moody’s downgraded Turkey’s credit rating to “B2” from “B1”, saying that the country’s external weaknesses would likely cause a balance of payments crisis and that its financial reserves were shrinking. .
Turkey faces US sanctions for buying a Russian and European missile defense system to explore for gas in the waters claimed by Cyprus. Trump was instrumental in delaying Washington’s sanctions until this month.
Erdogan was slow to congratulate President-elect Joseph Biden on winning the presidential election. Analysts expect the Biden administration to be tougher on Erdogan’s declining record on human rights and democratic standards.
Last November, Erdogan accepted the resignation of Finance Minister Berat Albayrak after his sudden announcement that he would resign for health reasons, a day after the Turkish president appointed former Finance Minister Naji Iqbal to replace the bank’s governor. central Murat Uysal.
