Turkey's currency, the lira, has experienced a significant decline against the Canadian dollar over the past several years. In 2015, one Canadian dollar was worth approximately 2.3 Turkish lira. Today, that figure has skyrocketed to nearly 30 lira for a single Canadian dollar, marking an increase of over 1200 percent, according to currency exchange data.

From the perspective of Ankara, this situation reflects a prolonged economic collapse characterized by a series of currency crises and rampant inflation. Turkey has faced three major crises in recent years: one in 2018, another in 2021, and the latest in 2023. In 2023 alone, the Canadian dollar has appreciated nearly 18 percent against the lira, despite being relatively weak against other currencies like the U.S. dollar and the euro.

A 2021 article highlighted that the crisis that year was not driven by economic fundamentals but rather by the unpredictable decision-making of President Recep Tayyip Erdogan. His influence over the Turkish central bank has drawn comparisons to former U.S. President Donald Trump's attempts to sway the Federal Reserve. Erdogan's approach has led to disastrous economic outcomes, including inflation rates soaring as high as 85 percent and interest rates climbing from 8 percent a decade ago to a projected 50 percent in 2024.

Erdogan's management of the central bank has been erratic, with five governors appointed and dismissed in just six years. This year, he intensified the political climate by arresting Istanbul Mayor Ekrem Imamoglu, who was seen as a potential challenger in the upcoming presidential election. Imamoglu faces accusations of falsifying his university diploma, with prosecutors seeking an eight-year prison sentence.

Turkey's economy, valued at about $1 trillion, is significantly smaller than that of Texas and is classified as an emerging economy by the International Monetary Fund. The ongoing economic challenges illustrate the potential damage caused by erratic governance, similar to the unpredictability seen in Trump's administration.

Trump has been vocal about his desire to replace Federal Reserve Chairman Jerome Powell, whose term extends until next May. Recently, Trump announced the dismissal of Governor Lisa Cook, the first Black woman on the Fed's board, accusing her of mortgage fraud. Cook has denied the allegations and filed a lawsuit claiming Trump's actions are unlawful.

Trump's push for lower interest rates aims to alleviate financial pressures on consumers and manage the national debt, which has ballooned due to significant deficits during both his and Biden's administrations. Reports suggest that Trump could personally benefit from these changes, having added at least $100 million in U.S. bonds to his portfolio since taking office.

While Trump's economic theory suggests that lower interest rates can stimulate spending and investment, the risk of inflation remains a concern. Powell has resisted pressure to lower rates, fearing that increased spending could exacerbate inflation. In contrast, Erdogan has maintained that high interest rates are the cause of inflation, adhering to this belief despite the financial chaos it has wrought.