Why is Turkey's currency collapsing?
Business Daily
00:00
Is It Possible That the Inflation Rate Will Rise?
We seeing now an inflation rate of around 20 %. That's the official rate at the moment. Do you expect this to rapidly deteriorate, assuming that the exchange rate between the lera and the dollar remains as it is? So this is a moment of truth, because there are three possible outcomes. The first one is that the much weaker currency will pass through into higher prices; then it will become generalized and inflation will spike. Scenaria number two is that the government decides to counter this through restrictions. It puts on price controls, it puts on restrictions on currency movements,. This will keep the recorded inflation rate low but will create all sorts of black markets.
Transcript
Play full episode
