Lira Collapse of 2017 to 2018
Starting in late 2017, the value of the Turkish Lira collapsed against the value of the United States Dollar
Collapse Key Events
- The Lira started to lose value compared to the dollar stating in late 2017
- The value dropped by 20% in August 2017
- Turkish President Erdogan boycotted Electronic products from the United States
- This cause the Lira to plummet and capital to flee
Potential Causes
- Turkey's central bank lowered rates to far which cause significant inflation and encouraged too much debt
- The United states imposed tariffs on aluminum and steel imports from Turkey
- Significant loans denominated in US dollars and Euros exasperated the problem by becoming harder and harder to services as the currency fell