Big news for enthusiasts happened yesterday Apple Lossless Audio CODEC (ALAC), in Turkey. The Cupertino-based company has temporarily suspended online sales of its devices in Turkey. This is a direct response to the economic crisis in the country. The ongoing crisis is fueled by the conflicting monetary policy pursued by President Recep Tayyip Erdogan. Apple has not announced an official end of sales, however, online shopping is temporarily unavailable due to economic instability in the region. We do not expect any relief in the country, so Apple is likely to will stick this policy for a while.
Although the online store is currently operational and displays complete product listings, specifications and prices, shoppers cannot add items to their cart. Instead, the website reports that almost all devices are unavailable. The Turkish lira fell 15 percent on Tuesday, a day after Erdogan said there would be no retreat from the controversial monetary policy when the country's central bank cut interest rates amid soaring inflation. The lira traded at an all-time low of 13,44 per dollar and then recovered to 12,86 per dollar later in the same days.
Apple responds to Turkey's growing economic crisis
To date, the lira has lost 45 percent of its value this year, down about 22 percent in the last week alone. The sale was a direct response to pressure from the president to cut rates. Its goal is to boost exports, investment and jobs, according to an initial Reuters report. So far, the inflation rate is about 20 percent. As usual, he sharply increases the prices of goods and also estimates the income of the Turks.
The Turkish lira is currently equivalent to approximately $ 0,078. As we mentioned above, its value has been steadily declining since last week.
It is not yet known when Apple will resume sales in the country. However, given the current economic policy, we do not think that sales will not resume at this time.
Usually, when inflation rises, the direct step by the economic authorities is to raise interest rates. However, when it comes to Turkey, the government does the opposite. Erdogan believes that the devaluation of the lira will benefit the country from its exports. But this is not enough to support the entire economy. Moreover, this creates a number of problems for the citizens of the country, as inflation gradually reduces their purchasing power.
