The depreciation of the Turkish lira is closely related to the economic recession in Turkey and the instability around Turkey. Although Turkey has become a member of NATO, it obviously cannot be compared with other NATO members in the economic field. In recent years, the international financial bureau is very complicated, and the economy has been in a state of stagnation for a long time. Under this circumstance, Turkey's economy will also collapse with the global economic weakness. It can be said that the rapid depreciation of the Turkish lira also shows that international investors do not trust the healthy value of the Turkish economy. However, the weakness of Turkey's economy is also closely related to the following reasons. First, excessive debt has caused great hidden dangers in the Turkish economy.
Turkey has a very close relationship with European and American countries in recent years, so it has also attracted many investments from western countries. Although these investments have promoted the rapid development of Turkey's economy to a certain extent, they have also led to financial bubbles in all walks of life in Turkey. Although Turkey's economy is in the stage of rapid development, this kind of financial bubble will not bring much harm, but once Turkey's economy has a serious decline, then the financial bubble is likely to lead to a serious crisis in Turkey's economy. Second, the tense relationship between Turkey and neighboring countries has also led to the rapid depreciation of the Turkish lira.
under the leadership of current president Erdogan, Turkey has gradually moved towards a conservative Islamic country. Moreover, there are many differences between Turkey and Syria and Iran in many policy concepts. Therefore, Turkey often has military or economic frictions with some Middle Eastern countries. However, this unstable local environment will also make Turkey unable to attract the favor of international investors. Therefore, the rapid depreciation of the Turkish lira is also closely related to the surrounding environment of Turkey. Third, there has been a serious rift between Turkey and the United States.
Although both the United States and Turkey were founded by NATO, there are still huge differences between Turkey and the United States in terms of local interests. Moreover, we also see that Turkey often finds its own sense of existence and topicality in some Middle East affairs, which actually has many conflicts with the layout interests of the United States in the Middle East. Therefore, we see that the United States often beats Turkey in various incidents, hoping to warn Turkey not to act rashly in this way. The tension between Turkey and the United States has also made the inflation problem in Turkey more and more serious.
the rapid depreciation of the Turkish lira may continue for some time, because the Turkish economy has been in a long-term downturn. If Turkey cannot resume its domestic economic production, the depreciation of the Turkish lira may further increase. By that time, Turkey's economy is likely to face a collapse.