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Inflation jumps to 36% in Turkey, Lira’s value plummets, citizens flock to stablecoins

The economy of the Republic of Turkey, as well as the country’s native fiat currency, the Turkish lira, are still in turmoil, with inflation reaching 36%. The lira has lost 44% of its value versus the US dollar since this time last year. Meanwhile, the use of stablecoins in Turkey has exploded, with the Turkish lira accounting for 28.96 percent of all tether trades.

Inflation jumps to 36% in Turkey

Inflation jumps to 36% in Turkey, Lira's value plummets, citizens flock to stablecoins

Image Source: Bitcoin News

According to reports released by the Turkish Statistical Institute on Monday, inflation in Turkey has reached 36 percent, the highest level in 19 years. According to Reuters, during the month of December, a basket of consumer prices increased by 13.58 percent.

The Turkish lira has lost 44% of its value against the US dollar in the last year. During Tayyip Erdogan’s presidency, inflation has never been higher. The country’s central bank has announced a scheme to encourage customers to convert gold into lira time deposits.

Turkey’s central bank has cut the country’s benchmark interest rate for the fourth consecutive month. The Turkish lira hit a historic low of 15.5 against the US dollar after the central bank slashed rates in mid-December.

The year 2021 has seen a significant increase in demand for bitcoin (BTC) in Turkey. TRY currently accounts for 0.69 percent of all BTC trades and 0.72 percent of all ETH swaps.

The demand for stablecoins in Turkey is substantially higher than the demand for other crypto assets such as BTC and ETH. TRY is the stablecoin tether’s (USDT) top fiat trading pair as of January 3, 2021, with 29.42 percent of USDT swaps.

Binance’s BUSD stablecoin has accounted for 7.20 percent of all deals with the Turkish currency today, making TRY BUSD’s second-most traded pair. Turkey is a small user of USDC, accounting for approximately 0.36 percent of all USDC swaps today.

According to reports, the lira’s poor performance this year has resulted in a large number of crypto-asset exchanges involving the fiat currency. However, Turkish President Recep Tayyip Erdogan reiterated Turkey’s position on cryptocurrencies, saying, “We have a separate war, a separate combat against them.”

The demand for stablecoins in Turkey is substantially higher than the demand for other crypto assets such as BTC and ETH. TRY is the stablecoin tether’s (USDT) top fiat trading pair as of January 3, 2021, with 29.42 percent of USDT swaps.
Binance’s BUSD stablecoin has accounted for 7.20 percent of all deals with the Turkish currency today, making TRY BUSD’s second-most traded pair. Turkey is a small user of USDC, accounting for approximately 0.36 percent of all USDC swaps today.

According to metrics, Turkish inflation is caused by a number of causes, including transportation costs, food and beverage expenditures, and the cost of household items “skyrocketing” in contrast to a year before.

Aside from the gold conversion scheme, Tayyip Erdogan has encouraged Turkish enterprises and high-net-worth individuals to help safeguard the country’s currency. “We’re going to decline as long as we don’t use our own money as a yardstick.” We will proceed with the Turkish lira, which is our money. On Friday, Erdogan stated, “Not with foreign currency.”

Also read: The Estonian regulator says it has no plans to ban crypto

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