The Euro/Dollar parity, which saw its lowest level in 20 years, caused historical times in the foreign exchange markets. Evaluating this foreign exchange movement, which has had great effects on the global economy, to the Milli Gazete, Economist Prof. Dr. Osman Altuğ said, “The problems in the Eurozone are getting deeper in the face of the American economy, which is still getting stronger. This will have more long-term effects rather than short-term effects. The dollar was expected to surpass the euro.”
The effects of the global economic crisis, which started with the coronavirus pandemic, are still seen. There has been a historic day in the foreign exchange markets recently. The Euro/Dollar parity, which saw its lowest level in 20 years, declined to 0,9971. The Dollar, which moved upwards after the US announced inflation data, left behind the Euro. According to this increase, the purchase value of the dollar increased to 17,620 Turkish Liras (TL) and the sales value became 17,660 TL. On the other hand, the purchase value of Euro is 17,550 TL and the selling value is 17,600 TL. Economist Prof. Dr. Osman Altug talked about this historical currency activity, which has a great effect of the Russia-Ukraine War and the coronavirus pandemic. Osman Altuğ, who made special statements to the Milli Gazete, also explained how the dollar's overtaking the Euro would affect Turkey.
“WE ARE SEEING A RESULT OF THE PRESSURE ON THE EURO”
Pointing out the reasons for the depreciation of the euro against the dollar, Economist Prof. Dr. Osman Altuğ added, “The value of a currency is determined by the production power. It is quite natural that the currency of a country with a high production rate is also high. The Euro is the currency of the European Union and what happens in that geography also affects the value of the Euro. There are not only relatively stronger manufacturing economies in the European Union such as Germany, France and Italy. There are also countries such as Romania, Bulgaria and Greece. We see a result of the pressure of these countries, which consume more than they produce, on the Euro. Who is trying to close this gap? Germany. However, Germany's power is also to a certain extent.”
“WHEN THE WHOLE WORLD COLLECTS MONEY WITH INTEREST, AMERICA IS COLLECTING INTEREST-FREE MONEY”
Reminding the power of America in the global economy, Osman Altuğ said, "No matter what anyone says, America is still the leading country in production and finance circles. While the whole world is collecting money with interest, America is collecting money without interest. In addition, oil-rich Arabs see America as a safe haven. America manages both the money and oil of Arab countries. This caused the dollar to strengthen against the euro. On the other hand, there is an energy problem in Europe and a crisis based on the Russia-Ukraine War and it is getting deeper every day. In other words, the problems in the Eurozone are getting deeper in the face of the American economy, which is still getting stronger. This will have more long-term effects rather than short-term effects. The dollar was expected to surpass the euro.”
“THE TURKISH ECONOMY HAS BIGGER PROBLEMS TO CONSIDER”
Osman Altuğ, Mentioning how Euro/Dollar parity change might affect the Turkey's economy, he added, “As Turkey, we import mostly in dollars and export in euros. The depreciation of the euro against the dollar also seems to be to our detriment at first glance. However, a large part of our imports is oil. So, are we exporting oil or petroleum products to Europe? No. So it doesn't matter to us. Since we are not a strong economy, the change in Euro/Dollar parity does not affect us. Moreover, most of the deposit accounts in our country are in dollars. Citizens also make a large part of their savings in dollars. Therefore, before the changes in the Euro/Dollar parity, the Turkish economy has bigger problems to consider.”