Ankara _ Agencies
Argentina and Turkey are undergoing an economic crisis that has a major impact on the world, and the Argentine peso has dropped half its value this year against the US dollar, forcing a number of countries in the Latin American continent to impose austerity measures to avert the same crisis.
The central bank of Argentina has raised the country´s interest levels to 60 percent, the highest in the world, in an attempt to stem the local currency´s haemorrhage, along with the Turkish lira dropping by 42 percent against the dollar this year, amid strained diplomatic disputes with the United States.
Other emerging economies, including Brazil, India and Indonesia, have experienced a decline in the value of their currencies, and in this context, German economist Isabel Schnabel warned that the crisis in Argentina and Turkey had triggered a global economic crisis, particularly in emerging markets.
Quoting the German newspaper "Handelsblat ", the Sky News Arabic reported that economist Isabel Shannabel, "the negative effects have started on other emerging countries, and if there is a major crisis in emerging markets, it will have a major impact on the global economy and thus on Germany Also.
Marcel Fritzcher, head of the DIW Economic Research Center in Berlin, warned that China may be affected by the recession associated with the crisis, adding: "Significant risks have grown dramatically in the Chinese financial system, and political interference in China has led to major economic imbalances."
The Argentine state had recently announced new export taxes and substantial spending cuts in a desperate attempt to balance its budget.
Argentine President Mauricio Makri said that "austerity measures" is the only way to confront the frequent waves of financial turmoil. "
Speaking in a televised national speech, Makri said: "This is not just another crisis, this is an emergency. We cannot continue spending too much, and we have to confront the odds in the best way possible. "
The Turkish finance Minister Bairaq that the country´s central bank will take all necessary steps to combat inflation.
The Turkish finance minister insisted that the price of the lira poses no risk to Turkish banks, despite widespread concerns that they may weaken the assets of lenders.
The diplomatic crisis between Ankara and the United States of America, concerning the US pastor, has strained the relationship between the two countries as a result of this, as well as the freezing of economic obstacles and transactions between the two sides, resulting in disastrous consequences from the devaluation of the Turkish lira, as well as the confrontation Argentina is a difficult economic situation as a result of inflation and the financial turmoil the country is facing.
