The economic crisis in Northern Cyprus


By Ahmet Abdulaziz ….

All of a sudden all of us found ourselves in an economic crisis.

The country that we live in had been through severe economic crisis in the past too. But every time when it hits, we all feel as if it is the first crisis in our lives.

All of  a sudden the Turkish Lira started losing value, and everything started getting out of  hand. There is no sense any more to count and start listing down the reasons behind the sudden loss of value of the Turkish Lira, as we all know them, and there is no reason why these should be discussed again and again.

The point is that right now, each and every one of us living in this country is having a financial crisis. The prices have increased abruptly. As they say, if you want to increase the price of everything, increase either the prices of petrol or electricity. Here increasing the prices of both has been the best solution that the government could find. The rest is well known. Everyone in the market have increased their prices just because their costs have increased.

Then the prices once again increased because the value of foreign currencies increased, meaning the buying power of the Turkish Lira has gone down. To make good this loss of reduction in the buying capacity, the importers of goods and services, again increased their selling prices.

Thus an unending chain of increase in prices started, which is still going on.


Photo by Daria Shevtsova on

The government is trying to take some measures, to reduce the burden of this economic crisis, but of course the crisis is so big, there is not much that the government can do.

Right now Unions have started agitations, and more are expected to follow in the very near future. But what will all this lead to? I think that it would not do anything good for anybody. Everyone knows that the government cannot change the overall system that has been put in practice for years and years.

Just let me ask one simple question. Why are we, as citizens of TRNC, buying properties in Pound Sterling? Why are we, as citizens of TRNC, buying cars in Euros or Pound Sterling? Why are we as citizens of TRNC taking foreign currencies loans from banks? Why are we as citizens of TRNC accepting a rent agreement in foreign currency?

Above are just a few basic questions that I usually ask myself and others. Unfortunately we planned to kill ourselves by accepting these practices.

We can ask ourselves. Who are we? Are we not the landlords who prefer to rent our property in Pound Sterling? Are we not the Builders who sell the properties in foreign currencies? Are we not the banks who give loans in foreign currencies to the builders, and importers?

One more important question that I ask myself again and again. Why do we not support local produce? Why do we like to prefer imported goods at the expense of the local producers? The answer to this question is simple. The selling price of the local produce is higher than the imported one. This is where the governments were supposed to do their part, which they failed. They should have made lives easier for the local producers. Unfortunately this is what was never done.

Expecting everything from the government is not fair. We too should have taken steps earlier to make our lives easier.

5 replies »

  1. Clever man, you have expressed what we have been saying for years. The hypocracy of charging in whatever currency brings in the best exchange at the time. We have been charged even in US dollars.