The Turkish Lira has hit new lows against major foreign currencies, intensifying economic challenges for citizens and businesses in North Cyprus. This week opened with significant increases in exchange rates across the board, marking a continued downward trend for the Turkish Lira.
As of this week the, the foreign exchange rates in the free market have reached alarming levels as Euro has hit 37.75 TL, US Dollar 34.10 TL, and British Pound 44.72 TL.
This currency devaluation is severely impacting living costs. The Cyprus Turkish Public Servants Union (KTAMS) reports that as of August 31, the poverty line for a family of four has risen to 27,402 TL per month.
The union’s breakdown of monthly food expenditures for a healthy diet is as follows:
* Adult woman: 7,075.50 TL
* Adult man: 7,378.80 TL
* Child (15-19 years): 7,767.30 TL
* Child (4-6 years): 5,180.70 TL
While the gross minimum wage stands at 33,926 TL, employees take home only 29,520 TL after deductions. This amount is increasingly insufficient to cover basic living expenses, particularly housing costs.
As most rents are pegged to foreign currencies, Turkish Lira equivalents are skyrocketing. Currently, the cheapest available housing option costs 350 British Pounds per month, equivalent to 15,652 TL. This means that housing alone now consumes about two-thirds of a minimum wage earner’s income.
