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Lira Collapse Leaves Turks Bewildered, Opposition Angry

People change money at a currency exchange office in Istanbul, Turkey November 23, 2021. (Reuters)
People change money at a currency exchange office in Istanbul, Turkey November 23, 2021. (Reuters)
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Lira Collapse Leaves Turks Bewildered, Opposition Angry

People change money at a currency exchange office in Istanbul, Turkey November 23, 2021. (Reuters)
People change money at a currency exchange office in Istanbul, Turkey November 23, 2021. (Reuters)

Anxious Turks struggled to keep up with a bewildering collapse in their currency and the main opposition party leader said the country was experiencing its darkest "catastrophe" as the lira slumped 15% on Tuesday against the dollar.

Tuesday's meltdown follows weeks of steep falls in the lira which have already driven up prices, leaving ordinary Turks reconsidering everything from their holiday plans to weekly grocery shopping.

"There has not been such a catastrophe in the history of the Republic," said Kemal Kilicdaroglu, leader of the opposition Republican People's Party, blaming the currency freefall on President Recep Tayyip Erdogan who has led the country since 2003.

"At this point, you are a fundamental national security problem for the Republic of Turkey," Kilicdaroglu said.

Erdogan has pressured the central bank to slash interest rates in a move he says will boost exports, investment and jobs, but which critics say will further fuel double-digit inflation and erode the lira, cutting deeply into Turks' earnings.

Shoppers at a central Ankara mall said they could not take their eyes off the lira rate, which plunged as far as 13.45 to the dollar on Tuesday. A year ago it was 8 to the dollar, last month it reached 9 and last week it hit 10.

"I've become unable to work without following the dollar," said 28-year-old advertising agency worker Selin.

"I don't think there is a single day where I don't have to watch my budget, and the calculation changes 100 times by the time I get next month's salary. There is nothing left, including toilet paper, that I buy without thinking carefully."

Former prime minister Ahmet Davutoglu, a founding member of Erdogan's ruling, Islamist-rooted AK Party before breaking away to form his own party, described the president's economic measures as "treason and not ignorance".

Kilicdaroglu, Davutoglu and some other opposition leaders have announced emergency meetings to discuss the currency after Tuesday's crash - the lira's second biggest fall ever.

'We are sinking'
Turks took to social media to express dismay. Top trending topics on Twitter were dominated by hashtags on the economy including "We are sinking", "Government resign" and "We cannot make ends meet".

In the southeastern city of Diyarbakir, shop owners burned what appeared to be fake dollars on the street in a symbolic gesture of protest, saying: "We cannot sleep, we don't know about our future."

Several people who spoke to Reuters said that as soon as they received their salaries or pensions, they converted them into foreign currency.

"I have asked for an advance on my monthly salary just to convert it into dollars so that I can maintain some sense of value in my earnings," said Emirhan Metin, 28, a lawyer in Istanbul. "It's nearly impossible to focus or talk about anything else at this point."

Haluk, a 36-year-old freelance film editor, said he was often paid with a lag of six to eight months. "So the contract I signed last month is worth 20% less today. Who knows how much it will be worth when I get paid six months from now?"

Doruk Akpek, CEO at a menstrual hygiene brand startup, said he tried to keep his savings in dollars and crypto-currency, but added the situation was tougher for those who only had lira.

"There is also a psychological unhappiness, you see the country collapsing in front of your eyes. It impacts the morale and motivation of people," Akpek said.

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What to Know about Sudden Gains of the Opposition in Syria's 13-year War and Why it Matters

Fighters seize a Syrian Army tank near the international M5 highway in the area Zarbah which was taken over by anti-government factions on November 29, 2024, as Hayat Tahrir al-Sham (HTS) group and allied groups continue their offensive in Syria's northern Aleppo province against government forces. (Photo by Rami al SAYED / AFP)
Fighters seize a Syrian Army tank near the international M5 highway in the area Zarbah which was taken over by anti-government factions on November 29, 2024, as Hayat Tahrir al-Sham (HTS) group and allied groups continue their offensive in Syria's northern Aleppo province against government forces. (Photo by Rami al SAYED / AFP)
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What to Know about Sudden Gains of the Opposition in Syria's 13-year War and Why it Matters

Fighters seize a Syrian Army tank near the international M5 highway in the area Zarbah which was taken over by anti-government factions on November 29, 2024, as Hayat Tahrir al-Sham (HTS) group and allied groups continue their offensive in Syria's northern Aleppo province against government forces. (Photo by Rami al SAYED / AFP)
Fighters seize a Syrian Army tank near the international M5 highway in the area Zarbah which was taken over by anti-government factions on November 29, 2024, as Hayat Tahrir al-Sham (HTS) group and allied groups continue their offensive in Syria's northern Aleppo province against government forces. (Photo by Rami al SAYED / AFP)

The 13-year civil war in Syria has roared back into prominence with a surprise opposition offensive on Aleppo, one of Syria's largest cities and an ancient business hub. The push is among the opposition’s strongest in years in a war whose destabilizing effects have rippled far beyond the country's borders.
It was the first opposition attack on Aleppo since 2016, when a brutal air campaign by Russian warplanes helped Syrian President Bashar Assad retake the northwestern city. Intervention by Russia, Iran and Iranian-allied Hezbollah and other groups has allowed Assad to remain in power, within the 70% of Syria under his control.
The surge in fighting has raised the prospect of another violent front reopening in the Middle East, at a time when US-backed Israel is fighting Hamas in Gaza and Hezbollah in Lebanon, both Iranian-allied groups.
Robert Ford, the last-serving US ambassador to Syria, pointed to months of Israeli strikes on Syrian and Hezbollah targets in the area, and to Israel’s ceasefire with Hezbollah in Lebanon this week, as factors providing Syria’s opposition groups with the opportunity to advance.
Here's a look at some of the key aspects of the new fighting:
Why does the fighting at Aleppo matter? Assad has been at war with opposition forces seeking his overthrow for 13 years, a conflict that's killed an estimated half-million people. Some 6.8 million Syrians have fled the country, a refugee flow that helped change the political map in Europe by fueling anti-immigrant far-right movements.
The roughly 30% of the country not under Assad is controlled by a range of opposition forces and foreign troops. The US has about 900 troops in northeast Syria, far from Aleppo, to guard against a resurgence by the ISIS extremist group. Both the US and Israel conduct occasional strikes in Syria against government forces and Iran-allied militias. Türkiye has forces in Syria as well, and has influence with the broad alliance of opposition forces storming Aleppo.
Coming after years with few sizeable changes in territory between Syria's warring parties, the fighting “has the potential to be really quite, quite consequential and potentially game-changing,” if Syrian government forces prove unable to hold their ground, said Charles Lister, a longtime Syria analyst with the US-based Middle East Institute. Risks include if ISIS fighters see it as an opening, Lister said.
Ford said the fighting in Aleppo would become more broadly destabilizing if it drew Russia and Türkiye— each with its own interests to protect in Syria — into direct heavy fighting against each other. -
What do we know about the group leading the offensive on Aleppo? The US and UN have long designated the opposition force leading the attack at Aleppo — Hayat Tahrir al-Sham, known by its initials HTS — as a terrorist organization.
Its leader, Abu Mohammed al-Golani, emerged as the leader of al-Qaeda's Syria branch in 2011, in the first months of Syria's war. His fight was an unwelcome intervention to many in Syria's opposition, who hoped to keep the fight against Assad's brutal rule untainted by violent extremism.
Golani early on claimed responsibility for deadly bombings, pledged to attack Western forces and sent religious police to enforce modest dress by women.
Golani has sought to remake himself in recent years. He renounced his al-Qaeda ties in 2016. He's disbanded his religious police force, cracked down on extremist groups in his territory, and portrayed himself as a protector of other religions. That includes last year allowing the first Christian Mass in the city of Idlib in years.
What's the history of Aleppo in the war? At the crossroads of trade routes and empires for thousands of years, Aleppo is one of the centers of commerce and culture in the Middle East.
Aleppo was home to 2.3 million people before the war. Opposition forces seized the east side of the city in 2012, and it became the proudest symbol of the advance of armed opposition factions.
In 2016, government forces backed by Russian airstrikes laid siege to the city. Russian shells, missiles and crude barrel bombs — fuel canisters or other containers loaded with explosives and metal — methodically leveled neighborhoods. Starving and under siege, the opposition surrendered Aleppo that year.
The Russian military's entry was the turning point in the war, allowing Assad to stay on in the territory he held.
This year, Israeli airstrikes in Aleppo have hit Hezbollah weapons depots and Syrian forces, among other targets, according to an independent monitoring group. Israel rarely acknowledges strikes at Aleppo and other government-held areas of Syria.