Currency and inflation issues
Most currencies are unstable, but the Turkish Lira is more unstable than most. It used to be weak, most notably during the 2001 crisis when the Lira fell to half its previous value within a few months. But the Lira has strongly appreciated in real terms ever since mid-2002, and is now more than 50% higher against the US dollar in real terms than it was before the 2001 crisis.
This strength has benefitted financial institutions and many investors and consumers, but it has hit exporters.
You do not fully understand a business until you know how much of its past results are due to currency devaluation/revaluation, and how it might be affected by any future major devaluation/revaluation.
How we can help you
We can identify the sensitivity of a business to changes in the Turkish Lira exchange rate: both the direct, immediate effects on its balance sheet and profit and the indirect effects from gain or loss in competitiveness.
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