Cryptocurrency trading volumes surge in Turkey amid all-time lira lows

Turkey has seen an increase in cryptocurrency trading, with operations exceeding one million operations per day. The surge in business activity comes as the local currency, the lira, falls to record lows, and citizens turn to cryptocurrencies in an attempt to salvage their meager savings.

The lira’s slide began when the head of the central bank was abruptly removed earlier in the year.

Crossing the million threshold

Since the lira has lost almost 40% of its value since September, citizens have been actively looking for options to avoid the devastating effects of inflation. So far, Turkey has crossed the threshold of one million transactions per day twice, and the first time was in March, when the abrupt replacement of the head of the country’s central bank caused a significant drop in the valuation of the lira.

While the number of trades has dropped significantly in recent months, the latest wave of volatility and uncertainty has reignited interest in cryptocurrency trading in the country.

Crypto a viable option

Citizens of Turkey are now increasingly converting the lira into gold or USD, and the local currency has lost 90% of its value since 2008. However, cryptocurrencies have also become a viable option, especially since Ankara you have converted to gold and USD more. hard. Bitcoin and Tether are the most popular trades against the Lyre, a position they have held for the past three years. Turkey currently accounts for 16% of the world’s crypto users.

The surge in business activity has also attracted the attention of the Turkish authorities, with the country’s deputy prime minister revealing that the government will draft regulations for the emerging asset class.

Potential rescue package

Turkey’s president has announced a bailout plan, hoping to encourage citizens to return money to the sinking currency, but this move has only led to a marginal strengthening of the currency, and the lira has still lost its grip. half its value against the dollar.

The government declared that it would guarantee returns on lira deposits, similar to foreign currency returns, and citizens must deposit lira in fixed accounts with a minimum interest rate. While the government has yet to clarify how it would pay the incentives to depositors, economists have suggested that the central bank would continue to print more money.

Uncontrolled inflation and lire in free fall

The lyre has kept falling after Turkish President Recep Tayyip Erdogan rejected pleas and warnings from companies about the recent interest rate cut, while stating that there was no going back from the approach Turkey had taken. The lira has tumbled to a record low of 17.5 against the dollar, having lost 50% of its value since Erdogan ordered the central bank to cut borrowing costs.

With inflation figures topping 16% and a currency in crisis, the citizens of Turkey are ditching the lira and turning to Bitcoin as a way to hedge against inflation and prevent your savings from becoming further devalued. The lira had plummeted after the firing of central bank governor Naci Agbal.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice..


Source: https://cryptodaily.co.uk/2021/12/cryptocurrency-trading-volumes-surge-in-turkey-amidst-record-lira-lows

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