Turkey has recently announced a significant increase in the euro-lira conversion rate for medicine prices. The new rate, as published in the country’s Official Gazette, stands at 14.0387 lira per euro, representing a 30.5% surge. This update comes amid a challenging economic climate, where the lira has been depreciating, and the government introduced recent tax hikes.
Implications on Medicine Prices
The impact of this increase in the euro-lira conversion rate for medicine prices is expected to be substantial. As the updated rate is nearly half of the market rate, it could lead to higher medicine costs for consumers and the healthcare industry.
Considering the current state of the Turkish economy, this move could exacerbate inflation further. Already, inflation has been on the rise due to the devaluation of the lira and the recent tax adjustments implemented by the Ankara government.
Economists are closely monitoring the situation and making adjustments to their end-2023 inflation forecasts. In June, the inflation forecast stood at 38.21%, but with these recent developments, experts are now revising their estimates to around 60%.
The decision to raise the euro-lira conversion rate for medicine prices is a significant move by the Turkish authorities. While it may have been intended to address economic challenges, there are concerns about its potential impact on inflation and the cost of healthcare for citizens.
The increase in the euro-lira conversion rate for medicine prices in Turkey has been recorded at 30.5%, according to the Official Gazette. The effects of this decision are likely to be felt across various sectors, with particular attention to inflation rates and healthcare expenses for the general population.
- Source: Reuters
- Reporter: Ali Kucukgocmen
- Editor: Hugh Lawson