The rate of the Turkish lira has already fallen below the level of the crisis of two years ago. The economy is sputtering, and inflation is rising.
The central bank has deployed a large part of its reserves in recent years, but cannot support the currency forever, so other – and less popular – measures are urgently needed.
Two years ago you could read on this site and elsewhere how the Turkish currency, the lira, looked like in free fall.
The threat of sanctions by US President Donald Trump was partly related to that at the time, but that conflict was more or less settled, after which the course of the lira recovered a bit.
Since then, the course of the lira has continued to muddle up somewhat, structural interventions were not made for political reasons (President Tayyip Erdogan), and the central bank bought up Turkish pounds en masse to prevent the course from slipping further.
Then in the spring, the corona crisis struck in Turkey, and it suddenly set the lira in motion again, towards a decline.
Since the commencement of this year, the exchange rate of the lira against the dollar has already fallen by 19 percent, especially in recent months, and the decline is continuing.
A dollar is now worth 8.8 lira, which is more than during the crisis two years ago.