The price of oil in Turkish lira has more than tripled

Rising crude oil prices have a negative impact on the weak pound and the Turkish economy, while President Recep Dogan is preparing for a difficult election campaign amid high inflation and stagnant wages.

The problem is expected to worsen as oil more than tripled in Turkish lira last year.

Because of these complications, the Turkish leader forced the central bank to lower interest rates in order to create more jobs. Rising costs, however, are increasingly pushing Turkey into a price spiral.

The price of oil rose by about 500 pounds per barrel to almost 1,800 pounds last year. Turkey imports about 900,000 people a year. barrels per day. At the same time, fuel prices have increased sixfold in the last week alone.

Moreover, consumer inflation in Turkey has reached its negative record - thanks to the increase in energy prices, inflation accelerated to 105% in February.

The Turkish central bank expects the oil price to reach $80.4 per barrel. This means that by the end of 2022, 4.8 percentage points will be added to inflation.

In recent months, energy imports have increased, which inevitably led to a shortage. One of the goals of the Turkish representatives led by Erdogan was to register a current account surplus, thanks to a weaker pound. However, in the current economic situation, this goal seems unattainable.

Kuantyay Sabaaymi

Kuantyay Sabaaymi was born in Phuket, Thailand. Graduated International Business the executives at the University of the Thai Chamber of Commerce. Over the past three years he served as a Financial Analyst, where he was answerable for study, ordering and research of monetary data and accounting reports. The other job was to make, keep up and give and monetary detailing and examination.

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