Archives Economics - Page 19 of 21 - New Eastern Outlook

The current financial crisis in Turkey demonstrates the rapid devaluation of the Turkish lira. After the second round of presidential elections, the Turkish lira has been falling in value almost daily, breaking new historic lows. Thus, on June 22 it overcame the psychological mark of 24 lira per dollar. All of this was the result of obvious irregularities in Turkey’s financial management, when the authorities, for populist purposes and pragmatic reasons of increasing the number of their supporters in elections, artificially kept the low credit rate of the Central Bank to encourage small business and support domestic production. However, the market system of the Turkish economy, one way or another, is integrated into the global economy, where the rules of financial lending and investment are determined not by the Turks, but by their Western allies. Accordingly, the policy of the Central Bank of the Republic of Turkey must take into account the international economic situation and established norms.

The dominance of the US dollar in the global economy continues to wane quietly but relentlessly as many countries actively seek other currencies. First and foremost, they are the BRICS nations of Russia, China, India, Brazil, and South Africa. Although it appeared to be only a few countries, the total population is over 3.23 billion, accounting for more than 40% of the world’s population.  Between 2000 and 2026, the BRICS population is expected to grow by 625 million people, most of them in India and China.  By 2020, the BRICS countries’ total GDP was 25% of the global (21 trillion dollars), and their share in international trade was about 20% (6.7 trillion dollars)…

For fear of a negative US reaction, Hanoi stayed out from SPIEF 2023, one of the world’s largest business forums. The 26th annual St. Petersburg International Economic Forum concluded on June 17 in Russia, with the goal of building commercial partnerships and expanding contacts with trading partners. Participants in SPIEF 2023 have begun to develop a new trust zone and a bloc of sovereignty-seeking countries eager to build bridges of understanding…