Inflation in North Cyprus shows 200 percent increase

The rapid depreciation of the Turkish Lira in the last five years affected everybody from the rich to the poor in the country as payments made in pounds sterling, dollars and euros doubled, many businesses closed and hundreds unemployed.

The depreciation of the Turkish lira against the dollar, pound sterling and euro has overturned the country's economy. With this, citizen solution is to tightly reduce their expenses thereby affecting small business.

Having to pay rent for shops using foreign currency has forced many business to shut down increasing the number of  unemployed in the country.

The depreciation of the TL against the dollar, pound sterling and euro led to a 200 percent increase in rents, installments and tuition fees paid in foreign currency. However, the minimum wage was only increased by 65 percent over the last five years.

In March of 2013, the dollar was worth 1.7660 and rose to 3.9486, the pound was worth 5,5522 from 2,7634, and the euro, which was worth 2,3873, rose to 4.867.

The minimum wage, which is TL 415 in 2013, was 2,365 TL in 2018. However, the increase in the minimum wage became meaningless in a country where salaries are paid in TL and many payments made in foreign currency.

Although the minimum wage increased by TL 950 in 2018, the monthly minimum wage is equivalent to 598 in dollars, 425 in pounds and 485 in Euros.

Economist Göksel Saydam said that the problem is not the appreciation of dollars, pounds and Euros, but the depreciation of TL.

Turkey's struggle with terror is one of the reasons and money being spent on the war in Afrin, and the open economic war with foreign powers such as Europe and America.

Bearing in mind that the cost of living as an index is also increasing, Saydam said that in February 2018 the cost of living was 11.80 percent.Transparency said it is estimated that by 2018 it could rise to 15 percent.

Edited from Kibris