Re: Turkey lira was close to devaluation now russian currency
That makes no sense whatsoever!
For starters it's the law of supply and demand, when they print fiat nonstop, it dumps in value and in the past couple of years (starting from COVID in 2020) Turkey has been printing a ton of money to keep the economy afloat but at the cost of significantly increasing the inflation and devaluation of Lira. From 1 USD being 5 Lira in 2020 to today's 27 which is a 440% rise (or devaluation of Lira).
This has practically ruined Turkish economy.
Secondly what you explained about intentionally decreasing the exchange rate (like what China does) ONLY makes sense for countries that export and need to stay competitive not for a country like Turkey that heavily depends on imports. In other words when the national currency dumps, it becomes more expensive to import anything.
Specifically Turkish military complex heavily depends on imports whether importing arms like air defense or fighter jets which they buy as a whole, or importing parts to be used in manufacturing arms like in their drone industry. Having a weak fiat makes it extremely hard and super expensive!
Now when you compare that with another Country like Russia you are forgetting that Russia doesn't rely on imports as much as Turkey does specially in arms, parts and most importantly energy.
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For starters it's the law of supply and demand, when they print fiat nonstop, it dumps in value and in the past couple of years (starting from COVID in 2020) Turkey has been printing a ton of money to keep the economy afloat but at the cost of significantly increasing the inflation and devaluation of Lira. From 1 USD being 5 Lira in 2020 to today's 27 which is a 440% rise (or devaluation of Lira).
This has practically ruined Turkish economy.
Secondly what you explained about intentionally decreasing the exchange rate (like what China does) ONLY makes sense for countries that export and need to stay competitive not for a country like Turkey that heavily depends on imports. In other words when the national currency dumps, it becomes more expensive to import anything.
Specifically Turkish military complex heavily depends on imports whether importing arms like air defense or fighter jets which they buy as a whole, or importing parts to be used in manufacturing arms like in their drone industry. Having a weak fiat makes it extremely hard and super expensive!
Now when you compare that with another Country like Russia you are forgetting that Russia doesn't rely on imports as much as Turkey does specially in arms, parts and most importantly energy.
Turkey been keeping rates low in order to invest in military and now turkey is one of most powerful country in Europe.
It is the most powerful military in "Europe" but it is at best a mediocre military globally considering how Turkey has only lost any battle they entered over the past couple of decades and are still stuck in Syria and Iraq being bombed into oblivion by militia )