Turkish financial tremors subside

SEVEN days of financial quakes and tremors may have shaken Turkey, but the money-changers working the crowded market at the Swordmakers' Gate of Istanbul's Grand Bazaar did not seem much stirred.

'It's stabilised now; it's fine. The banks and the currency bureaux have all made a stack and the bill will be paid in inflation by Mr Average, as usual,' said Hassan Oz, stepping aside for an armoured American Jeep to squeeze through the alleyway with another small mountain of cash.

Passing tourists snapped photos of the scrum of men gesticulating with the latest in pocket- telephone technology. Little did they know that the crumbling medieval caravanserais and the traders' scruffy appearance disguised slick computer backrooms, safes full of gold bars and a market that had put plenty of money back into their pockets.

The pound sterling is now worth 26,000 lira and the dollar 17,500 lira, both up about 20 per cent locally so far this year. All the indications are that holiday-makers can count on the lira remaining weak. The only trouble is that they may discover, as Turkish consumers already have, that many hoteliers and rug-merchants now post prices in dollars to protect their earnings.

Days of pressure on the lira forced the Turkish government to cave in on Tuesday evening, when it brought official prices into line with the free market by announcing a 12 per cent devaluation. The last official devaluation was in 1980, part of an austerity package that failed to prevent Turkey's last military coup in that year. The latest measures may trip up Turkey's 7.1 per cent GNP growth in 1993, but few expect another military intervention, despite the military's high-profile role in the war with Kurdish rebels.

Unfortunately for Turkey's long-suffering Mr Average, the Prime Minister, Tansu Ciller, did not dare announce firm measures to tackle 71 per cent inflation or the bulging budget deficit. A recent new tax on rich investors was actually abolished to attract money back into the lira. Mrs Ciller, elected seven months ago, stressed the one victory of the two-week lira crisis, saying: 'Let the free market do the work.'

But Mrs Ciller's determination has not overcome the weaknesses of her coalition government, and the Turkish political system, as the country heads for key local elections on 27 March.

Voices
'Irritatingly Disneyfied': fashion vlogger Zoella
voices

News
people

Actress sees off speculation about her appearance in an amazing way

Arts and Entertainment
The last great picture - Winner 'Black and White' and overall 'Wildlife Photographer of the Year'
art
News
Carl Bernstein (left) and Bob Woodward (right) with former 'Washington Post' executive editor Ben Bradlee
people

The Washington Post editor helped Bob Woodward and Carl Bernstein bring down President Nixon

PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksAn unforgettable anthology of contemporary reportage
Life and Style
tech

Board creates magnetic field to achieve lift

News
There have been various incidents of social media users inadvertently flouting the law
news

Life and Style
Stack ‘em high?: quantity doesn’t always trump quality, as Friends of the Earth can testify
techThe proliferation of online petitions allows us to register our protests at the touch of a button. But do they change anything?
News
Bourgogne wine maker Laboure-Roi vice president Thibault Garin (L) offers the company's 2013 Beaujolais Nouveau wine to the guest in the wine spa at the Hakone Yunessun spa resort facilities in Hakone town, Kanagawa prefecture, some 100-kilometre west of Tokyo
i100
Sport
CSKA Moscow celebrate after equalising with a late penalty
footballCSKA Moscow 2 Manchester City 2: Premier League champions let two goal lead slip in Russia
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Trainee Recruitment Consultant - SThree Group - Bristol

£18000 - £23000 per annum + Uncapped Commission: SThree: SThree Group has been...

Trainee Recruitment Consultant - SThree Group - Birmingham

£18000 - £23000 per annum + Uncapped Commission: SThree: SThree Group has been...

Trainee Recruitment Consultant - Birmingham - Computer Futures

£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...

Trainee Recruitment Consultant - SThree - £18k Starting Salary

£18000 - £23000 per annum + Uncapped Commission: SThree: SThree Group has been...

Day In a Page

Indiana serial killer? Man arrested for murdering teenage prostitute confesses to six other murders - and police fear there could be many more

A new American serial killer?

Police fear man arrested for murder of teen prostitute could be responsible for killing spree dating back 20 years
Sweetie, the fake 10-year-old girl designed to catch online predators, claims her first scalp

Sting to trap paedophiles may not carry weight in UK courts

Computer image of ‘Sweetie’ represented entrapment, experts say
Fukushima nuclear crisis: Evacuees still stuck in cramped emergency housing three years on - and may never return home

Return to Fukushima – a land they will never call home again

Evacuees still stuck in cramped emergency housing three years on from nuclear disaster
Wildlife Photographer of the Year: Intimate image of resting lions claims top prize

Wildlife Photographer of the Year

Intimate image of resting lions claims top prize
Online petitions: Sign here to change the world

Want to change the world? Just sign here

The proliferation of online petitions allows us to register our protests at the touch of a button. But do they change anything?
Ed Sheeran hits back after being labelled too boring to headline festivals

'You need me, I don’t need you'

Ed Sheeran hits back after being labelled too boring to headline festivals
How to Get Away with Murder: Shonda Rhimes reinvents the legal drama

How to Get Away with Murder

Shonda Rhimes reinvents the legal drama
A cup of tea is every worker's right

Hard to swallow

Three hospitals in Leicester have banned their staff from drinking tea and coffee in public areas. Christopher Hirst explains why he thinks that a cuppa is every worker's right
Which animals are nearly extinct?

Which animals are nearly extinct?

Conservationists in Kenya are in mourning after the death of a white northern rhino, which has left the species with a single male. These are the other species on the brink
12 best children's shoes

Perfect for leaf-kicking: 12 best children's shoes

Find footwear perfect to keep kids' feet protected this autumn
Anderlecht vs Arsenal: Gunners' ray of light Aaron Ramsey shines again

Arsenal’s ray of light ready to shine again

Aaron Ramsey’s injury record has prompted a club investigation. For now, the midfielder is just happy to be fit to face Anderlecht in the Champions League
Comment: David Moyes' show of sensitivity thrown back in his face by former Manchester United manager Sir Alex Ferguson

Moyes’ show of sensitivity thrown back in his face... by Ferguson

Manchester United legend tramples on successor who resisted criticising his inheritance
Two super-sized ships have cruised into British waters, but how big can these behemoths get?

Super-sized ships: How big can they get?

Two of the largest vessels in the world cruised into UK waters last week
British doctors on brink of 'cure' for paralysis with spinal cord treatment

British doctors on brink of cure for paralysis

Sufferers can now be offered the possibility of cure thanks to a revolutionary implant of regenerative cells
Ranked seventh in world’s best tourist cities - not London, or Edinburgh, but Salisbury

Lonely Planet’s Best in Travel 2015

UK city beats Vienna, Paris and New York to be ranked seventh in world’s best tourist destinations - but it's not London