Turkey’s Currency, I

 
 
 

Vocabulary

lira (2)	slightly	recovered
series	suggest	meltdown (2)
persist	attempt	measure (2)
fragile	strategic	announce
assure	ministry	institution
rate	level (3)	account (2)
accuse	reiterate	diplomatic
basis	spat (2)	currency
stab	impose	stab in the back (2)
refusal	turmoil	troubling
insist	alliance	authority
tariff	emerge	central bank
pastor	sanction	seek/sought/sought
risky	post (3)	liquidity
crisis	investor	take legal action
accuse	analyst	misleading
mood	provoke	back down

 
 
 
 
 

Video: Turkey’s Currency

 
 
 
 

Transcript

 
 

The Turkish lira has recovered slightly from the meltdown. This after Ankara’s Central Bank announced a series of measures to provide liquidity to banks.

But the currency is still fragile.

President Recep Tayyip Ergodan attempted to assure his people that the economy will remain strong.

Recep Tayyip Ergodan, Turkish President: “We’re taking the necessary measurement against these attacks together with the finance ministries and other institutions.

And we’ll continue to take them. I believe the currency rate will return to a normal level.

Don’t worry.”

The Turkish lira has lost about forty-five percent (45%) of its value against the dollar since the start of the year.

Analysts say they are largely due to worries over Erdogan’s increasing control over the economy, and a diplomatic spat between Turkey and an the United States.

But Erdogan reiterated his view that the lira’s fall had no economic basis.

He accused the US as Turkey’s strategic partner of stabbing Ankara in the back. Last week, Washington imposed sanctions on Turkey over its refusal to release a US pastor causing economic turmoil.

Now, although Erdogan insists that the situation will be eased, global investors are worried.

Mike Ingram, WH Ireland Chief Market Strategist: “President Erdogan has suggested over the weekend if the US persists with sanctions and tariffs, that it might seek alliances elsewhere.

We know that Erdogan and Russian President Vladimir Putin spoke over the weekend, so I think that’s probably what’s troubling investors because at the moment we seem to be in a risky mood.”

As Turkey seeks to emerge from the crisis, it has also moved to take legal action against what it calls “economic terrorists”. Authorities have accused hundreds of social media accounts of provoking the currency’s fall by posting misleading information.

They say they won’t back down on what they call an “economic war”.

 

 

Questions

1. Turkey is having financial woes. True or false?

2. Is President Recep Tayyip Erdogan optimistic or pessimistic about Turkey’s economy?

3. Has the value of the Turkish lira increased, decreased or remained the same? Why is there inflation?

4. Erdogan admits that the lira crisis is the fault of his administration. Is this right or wrong?

5. Why is there a diplomatic row between Ankara and Washington? What might be a consequence?

6. “Authorities have accused hundreds of social media accounts of provoking the currency’s fall by posting misleading information.” Elaborate on this.

7. Erdogan will probably release the American pastor. What do experts think?

 

A. Does your nation’s currency experience inflation, deflation, both, neither or it fluctuates?

B. What could or should Turkey do?

C. What causes inflation? What causes deflation?

D. What are the solutions to inflation and deflation?

E. How much did bread, gasoline, shoes, houses, cars, etc cost in the past? What might happen in the future?