What awaits Turkey after the dramatic decline of Free

Although Andrew's case Brunson, an Evangelical Christian preacher from North Carolina, has been at the centre of worsening US-Turkish relations, Turkey's existing economic problems are simply exacerbated in verse, analysts say.

Earlier this month, President Donald Trump imposed sanctions against two Turkish government ministers and last Friday he doubled the tariffs for import of steel and aluminum from Turkey to 50 per cent and 20 per cent, respectively, causing a dramatic slide in the lira.

The clash of the lira, which saw it drop to a 7.24 record against the dollar early Monday morning before it returns to 6.35 on Tuesday, sparked concerns that the economy, which is very dependent on loans in foreign currency, could slide into turmoil.

The country also faces a one-year credit deficit of 57 billion dollars, or 7 per cent of the Bruto (GDP) domestic product and growing unemployment, it broadcasts IndexOnline.

Inflation on the Rise

The free crisis, which has lost 45 percent of its value against the dollar so far this year, increases the cost of corporate debt, which stands at more than $220 billion, most of it in the construction industry.

Turkey's “Banks take loans from the foreign market and sell on the Turkish market, so a large devaluation in the lira puts balance pressures under pressure”, said Can Selcuki, general manager and partner in Istanbul's economic research.

In the private sector, a contract signed two weeks ago on the basis of the American currency is now more than 20 percent more expensive because of amortization”.

With inflation of 15.9 percent in July, prices of goods in stores have steadily increased for a while, and the decline of the lira threatens even greater increases in basic articles.

Melic Turkes, a mother who owns three stores in central Ankara, said she was concerned how the decline of the lira could affect the cost of her weekly food items.

Even basic things like butter and vegetables have grown a lot over the past few months. It is very disturbing to see that prices rise week after week”, 46-year-old said.

However, it backed President Recep Tayyip Erdogan's call for the country to return gold and dollar savings to the lira.

“American and Trump are harming the common people [Turkish],” said Turks. Should we not be friends because of a priest? We have to do everything we can to protect ourselves against these <x3 attacks.

Turkey's tense relationship with the US has reached a low point with the Brunson issue.

He has been arrested for nearly two years on charges of supporting the Kurdistan Workers' Party (PKK), which has been waging a four-decade fight against Turkey.

Erol, manager of an electronic goods store who refused to give his last name, said he was concerned that the cheap value and boycott could harm his business.

Many of the goods we sell are imported and we already have problems with price hikes due to the free value of the dollar and the euro”, he said. “I don't see how a boycott will help our economy. ”

The Turkish Central Bank has tried to support the freedom by promising to secure the liquidity needed for banks and to preserve financial stability.

Finance Minister Berat Albajrak pledged to describe an economic plan and dismissed speculation that the government could impose capital controls.

However, there was no indication that interest rates would increase to curb inflation and cool overloaded economy.

Meanwhile, two major business groups called for stronger monetary policies, including austerity measures; a plan to curb inflation; and for a diplomatic solution to division with the US.