LAST UPDATE 14:40
The Turkish pound is trying to recover today after its historic 15% dip yesterday that caused price chaos, leading many electronics stores, including the local Apple online store, to download their online services.
The Turkish currency was found to be gaining 6% today, ending the biggest downturn in the last 20 years, drawing a boost from the Official visit of the Crown Prince of Abu Dhabi and de facto leader of the United Arab Emirates, Sheikh Mohammed bin Zayed Al Nahyan in Turkey after the tensions of recent years.
The pound is currently rising to $ 12.1252 after yesterday’s low above the psychological level of $ 13 for the first time, in the wake of President Recep Tayyip Erdogan’s statements that he will defend interest rate cuts, despite the Rally of inflation that has already reached 20%, according to official data.
The pound has lost 43% of its value this year and more than 22% since the beginning of last week. At the same time, the yield on the 10-year pound bond climbed to 21.1%, the highest since May 2019.
The dip in the pound has dramatically reduced consumer purchasing power and caused a stir in trade, with Apple’s Turkish website freezing sales of most products, displaying the message “the product is not available”, according to Reuters.
An executive at an Apple store in Istanbul told Reuters that consumers now see electronic products as an investment, rather than a product they can use. “It’s surreal [αυτό που συμβαίνει] with the economy, but people see it as something that stores value and rushes to the shops. “They know they can sell it in a year from today for more than they paid for,” he told the agency.
Passive attitude from the central bank
The governor of the central bank of Turkey had an extraordinary meeting yesterday with the Turkish president in the middle of the selloff of the pound, with the bank characterizing the fall as excessive without offering any immediate reaction.
“The Central Bank of Turkey operates a system of floating exchange rates and has not committed to a specific level of exchange rates,” he said.