Turkey's Lira hit a record low, and its stock market tumbled after an earthquake that killed at least 2,2000 deaths. So this could be the reason that the economy will be blown and ravaged. 

Inflation is also surging, and what do you think will happen to the Turkish economy in the future? Turkey's Lira hit a fresh record low, and its stock markets tumbled on Monday. 

With all the geopolitical risks and surprise readings out of the country. Lira slipped to 18.85 in near trade before retracing most of its losses. And the country's leading equities benchmark dropped 4.6 percent.

Banks tumbled down more than 5 percent before paring some losses, with critical indexes down around 2.5 percent in earlier trades. However, now is the time when emerging markets are under pressure more widely, with currencies and stocks feeling the pain.

Turkey is feeling additional pressure, and geopolitical tensions have recently been on the rise with indications. They are adding to pressure on Turkish markets after Washington warned Ankara. Recent inflation data also raised concerns, and FX volatility could be around.

Turkey Lira Tumbles and Slumps to Record Low, Erdogan Immediately Declares 3-Month State of Emergency

The exchange rate fell to 22.70 Lira to the pound and 18.85 against the dollar. Emerging markets are under pressure more widely with currencies and stocks.

But it has been proven that the Turkey Lira tumbles and slumps to a record low, mainly due to the earthquake's effects. At the time, the death toll from the quakes was above 5,100, with many still missing and critically injured.

However, this 7.8 earthquake is a disaster for the Turkish economy. Erdogan stated that interest rates would worsen if the earthquake were not resolved quickly.

"Sadly, the Turkish economy is already in direct straits, as we all know. High inflation, budget deficits, current account deficits, and so on. And it is obvious that this earthquake is going to put a lot of pressure on the Turkish economy on the inflation side," said Arda Tunca.

Turkey's Lira hit a record low, and its stock market tumbled after a significant earthquake. Further economic hardship in a region already grappling with economic instability and geopolitical turmoil.

The Turkish Lira flies to a record low of 18.83, against a strong dollar, according to the primary stock index.

Deadly Earthquakes in Turkey can Add Inflation Struggle from 58% Data in January

Turkey's official consumer price index (PXI) inflation was recorded at 58&y/y in January. The official rate peaked in October at 8%, the highest headline rate posted by Turkey since June 1998, which was registered at 91%.

And Turkey's inflation expectations in February are expected to increase. In November, the central banks' monetary policy committee (MPC) cut its policy rate to 9%. Turkey's policy rate and central bank essentially remain idle on the sidelines. 

The Erdogan administration then conducts monetary policy, and Lira supplies and hard currency outflows via record trade. In January last, Turkish annual inflation dipped to 57.68% in January, at least according to the official data shown on Friday.

The sharp monthly rise was due to a raft of new year price hikes, including for public transport, tobacco products and services, and rising food prices. And according to experts, this magnitude 7.8 earthquake will cause prolonged economic damage.

It can be said that later Turkey's inflation will be worse because of the 3-month declaration of a state emergency. This means that the economy could be more maximally active.

Turkey's economy is currently in a very apprehensive condition. Many say that this could be the worst condition that Turkey will face. Turkey's inflation will also increase, while the Turkish Lira will slip, at least for the next three months.