Türkiye faces imminent economic collapse and public unrest

Türkiye is experiencing a serious economic crisis. The country's situation is worsening due to high inflation and dwindling foreign reserves. Many citizens, over 50 million, are boycotting government policies, which adds to the turmoil. There are concerns that mass withdrawals from banks and conversions to foreign currency could drain the country's reserves quickly. The Turkish lira is losing value rapidly. The government's attempts to stabilize the currency have not worked. Foreign exchange reserves are around $85 billion, but net reserves, after considering debts, are nearly zero or negative. Actual funds available for intervention may be between $20 billion and $40 billion. Several factors could trigger an immediate collapse. If 30 million citizens convert their lira to U.S. dollars, that could cost the central bank $15 billion. A small number of depositors withdrawing funds could eliminate over half of current reserves. Tax boycotts could further deepen the deficit. Additionally, disruptions in energy imports or labor strikes could lead to significant financial losses. There are different scenarios for how quickly Türkiye could face a financial disaster. A sudden bank crisis could occur within two weeks if enough people withdraw their money. A gradual collapse might happen in two to three months if current losses continue. Some hope for a temporary solution through external aid, but this would only delay problems. Political boycotts are worsening the economic situation. The opposition has organized mass protests and economic resistance, fostering distrust in the government. President Recep Tayyip Erdoğan is under increasing pressure, and many are questioning his ability to lead. The government is seeking solutions but has limited options. They may impose capital controls or seek loans from international organizations like the IMF, which goes against Erdoğan's past policies. Emergency measures like price controls might also be introduced but may not address root issues. The coming months are critical for Türkiye. Urgent action is necessary to avoid widespread unemployment and social unrest. Global powers are watching the situation closely, ready to intervene if needed. The future of Erdoğan's leadership and Türkiye's economy hangs in the balance.