A big psychological hit for the Turkish economy as most imported goods will now cost more including fuel, and not forgetting the amount of debt that is in dollars too.
The tip of the iceberg.
The vast majority of commercial rental contracts in Turkey are priced up in USD or EUR. Foreign staff (and higher level Turks) who work in the legal, financial and commercial sectors in Istanbul and Ankara are all paid hard currency salaries - and there are a lot more of those than many would think. If firms can't attract high calibre employees then Turkey ends up with a "brain drain" with the obvious knock on effect in efficiency and performance.
As the lira loses value, an increased number of sectors that traditionally use the native currency will start using USD & EUR as their base operating currency, by the time their products or services get to consumer level in TL they will then be subject to fluctuation dependent on the USD or EUR rates.
The effect of this on the man/woman in the street will... oh wait a sec, we've been here before. From the time you pick up the loaf of bread, to the time you go to pay for it you find the price has jumped by 20%.
And still large numbers of Turks will vote for Reg and the AKP in November... unbelievable!!
Still not convinced they will go to the polls unless guaranteed victory. Wont say any more in case I get accused of being "forbidding" by Colwyn.
JF