Currency crisis in Turkey: Better not think about tomorrow

Despite the dramatic fall of the Turkish lira, Istanbul business people are exercising their hold-up slogans. But if you want to be sure, you're in dollars.

Currency crisis in Turkey: Better not think about tomorrow
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  • Page 1 — Better not thinking about tomorrow
  • Page 2 — biting through to end
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    "Guatemala", "Colombia", "Mexico" stands on sacks next to roasting drum in back room, at counter buzzes The coffee machine, everywhere it smells of fresh beans. From his café in Istanbul Bohème district of Galata, Vedat Barker sells himself roasted coffee to hotels, bars and restaurants throughout city. The business has been running well so far, people here appreciate good coffee. Just recently, Barbara and his wife even moved to one of Princes ' Islands in Marmara Sea – dream of every istanbuler. Because of dramatic fall of Turkish lira in past few days, businessman suspects: best times are over.

    Currency inflation makes imports much more expensive, including coffee beans. He can pass on higher prices to customers, says Barker, but that is pressure on sales. "The best grades have become priceless for my customers. Who is already giving 250 lira for a kilo of Ethiopian coffee? " In order to keep his loss as low as possible, Barker orients himself on sale at exchange rate of euro. Coffee beans of highest quality, for example those from Ethiopia, become particularly expensive for Turks. That's why Barker took variety off shelves.

    Its café in Galata is a meeting place for architects, artists and software developers from surrounding offices and studios. Many have studied abroad and are used to visiting friends in Berlin, London or Amsterdam. But ir trips abroad have cancelled many because of fall of lira. Visits to Europe have been expensive for Turks before, now y are extremely expensive. At an exchange rate of at present about seven lira to euro, one overnight stay in a standard hotel in Europe costs about 560 lira – in Istanbul you can check in at Hilton Hotel.

    Turkish currency crisis-"This is like a 30 percent discount" The lira continues to lose value. While many Turks try to exchange ir money in or currencies, tourists are happy about comparatively low prices. © Photo: Chris McGrath/Getty Images Guilt are only USA

    President Recep Tayyip Erdoğan does not care – many of his constituents are conservative and come from a far-off layer of education that places less emphasis on travelling abroad. The fact that lira decline imports more expensive and thus cost of living, that companies and banks can only serve loans in dollars and euros with growing difficulties, however, disturbs president. After all, economic rise of Turkey in recent years was a hallmark of Islamic nationalist politician. As a result of upturn, Erdoğan has won every decisive election since 2002.

    Instead of reassuring markets in crisis, Erdoğan speaks of a conspiracy of "Zinslobby" and summons his people and Allah to win US-led "economic war," as he calls it, against Turkey. While economists demand an increase in key interest rates, President condemns interest as "tools of exploitation" and calls for ir reduction. He does not win confidence of investors, but in many Turks declaration is caught, USA once again tried to weaken proud Turkey.

    The businessman Erhan Sezgin * in Istanbul's port district of Karaköy also blames currency crisis for sanctions and penalties imposed by US President Donald Trump in dispute over detention of American pastor Andrew Brunson. Sezgin considers home-made political or economic mistakes to be less important. He is confident that Erdoğan will resolve conflict over time. "For Trump, politics is just anor kind of business. He's all about deals, "says Sezgin. He trusts that Turkish president will prevail at haggling around Brunson.

    Updated Date: 16 August 2018, 12:00

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