What impact has the development of Turkish lira had on Turkish economy?

The development of Turkish lira can be said to be ups and downs, and its economic impact on Turkey is also very serious.

In recent years, the lira has been falling, and this trend of lira has also led to the loss of bonds and exchange rate in Turkish stock market.

Guangjin, Turkish President Erdogan has been calling on people to exchange dollars and euros for lira to ensure Turkey's exchange rate, but this practice has not achieved any favorable results so far. On the contrary, it has worsened relations with western countries. In addition to the relationship between the lira exchange rate decline and the West, there are also contradictions with the United States, but more importantly, within the Turkish state. In the past decade, Turkey's economic growth has been in a situation of high foreign debt, high inflation and high deficit. This also caused inevitable contradictions for the subsequent economic growth.

With high foreign debt, high inflation and high deficit, coupled with the appreciation of the US dollar, Turkey cannot stabilize the lira by raising interest rates, but such high interest rates actually make the lira depreciate even more.

Moreover, the lira crash did not affect the Turkish country, but also brought a chain reaction, which also affected Europe and lowered the US stock market.

So what? Grey rhinoceros? The impact of the incident is immeasurable, and the impact on the exchange rate of the euro, European stock markets and banks is destructive. If you think badly and don't handle this matter properly, Turkey may trigger the European financial crisis again.

To make matters worse, the relationship between Europe and Turkey has not been very peaceful in recent years. If Turkey defaults this time, it will not only lead to conflict, but also increase the geopolitical pressure on the EU.

So now, except Turkey, our country is the European Union. The EU can't let the lira collapse and set off financial risks. The urgent task is to stabilize the Turkish financial system, devalue the lira, impact the European stock market, and reduce the risk of the euro and European banks.

So do you think the collapse of the Turkish lira will trigger a new European financial crisis?