Turkey, a country in the Middle East, is close to 76 million. Turkey is the third-largest country globally, with most of its territory located in Asia, while it also has a small amount of region in Europe. Turkey, primarily Islamic, uses the Lira as its official currency. Turkish Liras are currently worth 0.35 US dollars, but market conditions definitely will alter this.
For Turkey, the current financial crisis and the subsequent recessions are nothing new. The 2008–2009 financial crisis was the fifth to occur in the 30 years preceding. A financial crisis began in 1994, even though it was followed by a program to stabilize the economy and was supported by an IMF agreement in April of that year. A second crisis emerged in 1998 and 1999 following the concerns in Asia and Russia, causing inflation to reach around 60%. (Erkan 5). A disinflationary program was implemented before 1999 concluded, and the IMF’s 17th agreement was inked. The main goals of this agreement were to hasten economic growth and reduce inflation to a single-digit level by the end of 2002. The IMF-approved crawling-peg exchange rate regime was the cornerstone of the deflationary strategy. The public sector’s shrinkage, structural reforms, and privatizations were all highly emphasized. Between December 2000 and February 2001, a second crisis prevented it from succeeding. As a result, the crawling peg system was replaced with the 18th IMF accord and a floating exchange system. The agreement ended unproblematic in 2005, but the ambitious government requested a 19th pact to increase capital inflows and lessen currency rate swings.