Skip to main content

Turkey’s economy stands to suffer from euro’s downturn

The ramifications of the euro’s slide threaten to further stoke Turkey’s currency woes and soaring inflation.
A currency exchange vendor shows a sheaf of Euro currency notes at Tahtakale in Istanbul, on March 22, 2021.
Read in 

The euro’s slide to parity with the dollar is producing fresh strains for Turkey’s foreign trade, tourism and external debt liabilities, threatening to further fan the country’s galloping inflation.

The Turkish economy, which had long benefited from a euro stronger than the dollar, is in vulnerable shape now that the tide is turning. Its fragilities owe mainly to the dramatic slump of the Turkish lira amid Ankara’s controversial economic policies, marked by obstinacy in keeping interest rates low despite a dizzying surge in inflation.

Access the Middle East news and analysis you can trust

Join our community of Middle East readers to experience all of Al-Monitor, including 24/7 news, analyses, memos, reports and newsletters.


Only $100 per year.