Double layered economic crisis is at the door

Asst. Prof. Dr. Hasan Rüstemoğlu, lecturer from the Department of Business Administration, Faculty of Economics and Administrative Sciences, Cyprus International University (CIU) pointed out that the economies of all countries were adversely affected due to the COVID-19 outbreak, and added, “The Turkish Lira has experienced a serious depreciation against foreign exchange. The dollar exceeding the 7TL, Euro 8.5TL, and GBP 9.5TL band caused serious damage to the market in TRNC where most of the trade is carried out in foreign currency".

Stating that the second wave that started in July 2020 had an even more negative impact on the tourism sector, which was particularly difficult, Rüstemoğlu said, "The pandemic continues to affect other sectors as well as tourism".

It was noted that the presence of a severe economic depression is started to be felt in Turkey and Cyprus, similar to August 2018. Also, the Turkish Lira's exchange value against foreign currency has a serious loss.

Expressing that both the pandemic and the subsequent devaluation caused a double-layered economic crisis in TRNC, Rüstemoğlu said: "We came to the point that all stakeholders have serious responsibilities. It is essential that in case of an extraordinary crisis, measures need to be considered and discussed and implemented as soon as possible”.

Mentioning that this economic crisis is the 6th biggest economic crisis in the last 26 years since 1994, “as in every crisis, the society suffers a little more, unemployment increases and income distribution deteriorates. Reforms and regulations are needed to create new employment areas for people with job loss,” said Rüstemoğlu.

Rüstemoğlu pointed out that a new period has been entered with the pandemic, and the economic crisis has deepened worldwide and national and international cooperation is essential at this point.