Why Turkey's currency crash does not worry Erdogan

November 30, 2021.

The content of external sites is not responsibility of the BBC.

They include margarine, olive oil, tea, coffee, detergent, and toilet paper.

A bakery in Turkey's third city, Izmir, put up a sign explaining its higher prices by listing surging costs of ingredients such as flour, oil and sesame, and signed off with the message: "May God be with us."

Foreign currency debt is a problem for the private sector and most companies have found it is more profitable to hold products in storage rather than sell them.

Poverty and a widening gap in income and wealth equality are added up.

There are long lines outside petrol stations and local government offices.

The opposition parties have called for elections. There were small protests and dozens of arrests when the lira fell 18% in one day.

Young Turks on social media are the most visible display of public dissent.

I am not happy with the government. One young person told a reporter from a YouTube channel that he couldn't see a future for himself in this country.

In Turkey, one in five young people are out of work.

Turkey has the fourth highest rate of youth not in employment, education or training.

Turkey's youth compare their living standards to those in other countries and don't like what they see.

"For a young person in the US or Europe, it's easy to buy an iPhone with their salary," says one 18-year-old. I can't afford it if I work for a long time. I don't deserve that.

This generation is poised to play an important role in politics in Turkey, ruled by Mr Erdogan's Justice and Development Party since 2002.

Nine million Turks who were born after the late 1990s will be eligible to vote in the next election, which could cause trouble for the AKP.

A video that went viral showed a mother praising the president to a reporter, while her son pointed out his poor handling of recent disasters.

The ruling party's success was due to foreign funding after the financial crisis.

Turkey's economic growth came from government spending and lending to the construction industry.

The economy is at the mercy of currency fluctuations as production continues to depend on imports.

Few people are optimistic that Mr Erdogan's new economic model will help the Turkish lira.

Arda Tunca says all bets are off for what will happen next.

This is the first time we've used a model beyond economic theory. We knew what would happen even when there were crises. "Now it's impossible," he said.

Turkey.
The Turkish currency is in a crisis.
The president is Recep Tayyip Erdogan.