Turkey experiencing ‘inflation-devaluation spiral’ as lira heads south

[Homajon]

Turkey experiencing ‘inflation-devaluation spiral’ as lira heads south​

• May 25 2022 12:06 Gmt+3
• Last Updated On: May 25 2022 12:09 Gmt+3

Turkey is finding itself in a vicious circle of galloping inflation and a depreciating currency, said a leading emerging markets strategist, as the lira extended losses this year against the dollar.

The lira was trading down 1.5 percent at 16.34 per dollar at midday in Istanbul on Thursday. It has dropped by 19 percent in 2022 following a slump of 44 percent last year. The currency traded at 7.44 per dollar at the start of 2021.

The Turkish authorities have abandoned a recent policy of intervening in the currency markets and were now attempting to manage the lira lower, said Tim Ash, a senior emerging markets strategist at BlueBay Asset Management in London.

“With 70 percent inflation they need to constantly manage the lira weaker or face massive real appreciation,” Ash said. “They are in an inflation-devaluation spiral.”

The lira has weakened for 14 of the last 15 trading days.

The Turkish lira has dived against major currencies after the central bank, acting on orders from President Recep Tayyip Erdoğan, slashed interest rates late last year despite accelerating price increases. Erdoğan, who has sacked three central bank governors in three years, says higher interest rates are inflationary and also contradict with his Islamic beliefs.

Consumer price inflation extended a two-decade high to 69.97 percent in April. The central bank has indicated that it will not hike interest rate hikes to defend the lira and slow inflation -- Erdoğan opposes such a move. It has said it does not have to raise borrowing costs just because other central banks around the world were doing so to rein in inflation. Producer price inflation in Turkey stands at 122 percent.

Ash said the authorities may be managing a decline in the lira before setting a new level to defend it ahead of early elections. Turkey is due to hold presidential and parliamentary elections by June next year.
The central bank’s monetary policy committee is scheduled to hold a monthly meeting on interest rates on Thursday. Economists expect no change.

Turkey experiencing ‘inflation-devaluation spiral’ as lira heads south | Ahval

Turkey is finding itself in a vicious circle of surging inflation and a depreciating currency, said a leading emerging markets strategist, as the lira extended losses this year against the dollar.

ahvalnews.com

Erdogan is leading Turkey towards apocalypse!!!

 

[unrequitted_love_suzy]

so much for Turkey

 

[Germanpeter]

A game played by foreign bankers because Turkey does not play the courier game and (Israel criticized)

Still, I would say that Turkey is doing better than the rest of Europe. The euro is no longer even good for Germany. For France and Italy, the euro is the downfall. Sooner or later, of course, also for Germany. In Greece with an average income of 700-800€, half of which is rent, 2€ petrol and Greece and Co cannot devalue the currency to boost the economy. After all, Turkey sets export records. Up to a defined and controlled point, the EU is kept alive by bad loans

 

[PakAlp]

How can Turkey get out of this trap? Will it benefit Turkey if they have one currency with their turkic nations in the Turkic Union?

 

[VCheng]

How can Turkey get out of this trap? Will it benefit Turkey if they have one currency with their turkic nations in the Turkic Union?

By implementing policies according to sound economic principles, and not according to personal religious beliefs:

Erdoğan, who has sacked three central bank governors in three years, says higher interest rates are inflationary and also contradict with his Islamic beliefs.

 

[Germanpeter]

It's a global problem, not a Turkish one. In order to solve the problem, we would have to shake people up and enlighten them. People still don't know that the dollar is in private hands and above the law. People don't realize that all money printed is charged with interest and therefore the exorbitantly growing debt is always more than the world's available money. The whole thing is fully consciously built on collapse. The Turkish lira does not belong to Turkey and Erdogan can do little about it.

 

[Trango Towers]

Turkey experiencing ‘inflation-devaluation spiral’ as lira heads south​

• May 25 2022 12:06 Gmt+3
• Last Updated On: May 25 2022 12:09 Gmt+3

Turkey is finding itself in a vicious circle of galloping inflation and a depreciating currency, said a leading emerging markets strategist, as the lira extended losses this year against the dollar.

The lira was trading down 1.5 percent at 16.34 per dollar at midday in Istanbul on Thursday. It has dropped by 19 percent in 2022 following a slump of 44 percent last year. The currency traded at 7.44 per dollar at the start of 2021.

The Turkish authorities have abandoned a recent policy of intervening in the currency markets and were now attempting to manage the lira lower, said Tim Ash, a senior emerging markets strategist at BlueBay Asset Management in London.

“With 70 percent inflation they need to constantly manage the lira weaker or face massive real appreciation,” Ash said. “They are in an inflation-devaluation spiral.”

The lira has weakened for 14 of the last 15 trading days.

The Turkish lira has dived against major currencies after the central bank, acting on orders from President Recep Tayyip Erdoğan, slashed interest rates late last year despite accelerating price increases. Erdoğan, who has sacked three central bank governors in three years, says higher interest rates are inflationary and also contradict with his Islamic beliefs.

Consumer price inflation extended a two-decade high to 69.97 percent in April. The central bank has indicated that it will not hike interest rate hikes to defend the lira and slow inflation -- Erdoğan opposes such a move. It has said it does not have to raise borrowing costs just because other central banks around the world were doing so to rein in inflation. Producer price inflation in Turkey stands at 122 percent.

Ash said the authorities may be managing a decline in the lira before setting a new level to defend it ahead of early elections. Turkey is due to hold presidential and parliamentary elections by June next year.
The central bank’s monetary policy committee is scheduled to hold a monthly meeting on interest rates on Thursday. Economists expect no change.

Turkey experiencing ‘inflation-devaluation spiral’ as lira heads south | Ahval

Turkey is finding itself in a vicious circle of surging inflation and a depreciating currency, said a leading emerging markets strategist, as the lira extended losses this year against the dollar.

ahvalnews.com

Erdogan is leading Turkey towards apocalypse!!!

Why don't you run for elections and do better

 

[Homajon]

Turkey's inflation hits 24- year high

According to TurkStat, in May 2022, the annual consumer inflation rate was 73 percent in Turkey while the Inflation Research Group (ENAG) has estimated the same rate as 160 percent.

m.bianet.org

Weak Turkey...

 

[Homajon]

Senior Turkish statistician resigned ahead of May inflation data release - Bloomberg | Ahval

A senior official at the Turkish Statistical Institute (TÜİK) stepped down from his position as head of the consumer price department, just days before the institution released inflation data for May, the highest since October of 1998, Bloomberg reported on Friday.

ahvalnews.com

They quit, because they are sick of lying to the public.

The real inflation rate is the one published by the ENAG group.

Erdogan is leading Turkey to total destruction!!!

The worst president of the world!!!

 

[TNT]

This whole western financial system is built on collapse, its a bubnke waiting to burst. Its the reason i terest is haram in Islam. Only a a real asset based economy can last forever, though the growth rate will be low but it will be real growth and permanent.

Senior Turkish statistician resigned ahead of May inflation data release - Bloomberg | Ahval

A senior official at the Turkish Statistical Institute (TÜİK) stepped down from his position as head of the consumer price department, just days before the institution released inflation data for May, the highest since October of 1998, Bloomberg reported on Friday.

ahvalnews.com

They quit, because they are sick of lying to the public.

The real inflation rate is the one published by the ENAG group.

Erdogan is leading Turkey to total destruction!!!

The worst president of the world!!!

Why u worry abt Turkey so much, dont u need to look at ur own crap in iran? I mean Turkey is still a thousand times better than iran.

 

[Madni Bappa]

This whole western financial system is built on collapse, its a bubnke waiting to burst. Its the reason i terest is haram in Islam. Only a a real asset based economy can last forever, though the growth rate will be low but it will be real growth and permanent.



Why u worry abt Turkey so much, dont u need to look at ur own crap in iran? I mean Turkey is still a thousand times better than iran.

It's the same I am superior than you bullshit in middle east

 

[Dalit]

It's a global problem, not a Turkish one. In order to solve the problem, we would have to shake people up and enlighten them. People still don't know that the dollar is in private hands and above the law. People don't realize that all money printed is charged with interest and therefore the exorbitantly growing debt is always more than the world's available money. The whole thing is fully consciously built on collapse. The Turkish lira does not belong to Turkey and Erdogan can do little about it.

They played the same game in Pakistan and ousted Imran Khan.

Now you don't hear economic mismanagement in Pakistan anymore after the imported government is in place. It is all dandy. Despite the rupee being weaker, oil prices going up and the common man suffering manifold.

This whole western financial system is built on collapse, its a bubnke waiting to burst. Its the reason i terest is haram in Islam. Only a a real asset based economy can last forever, though the growth rate will be low but it will be real growth and permanent.



Why u worry abt Turkey so much, dont u need to look at ur own crap in iran? I mean Turkey is still a thousand times better than iran.

We play by their rules. After all, capitalism wasn't invented by non-Western nations. Of course they can rig the game and they do through various means.

 

[fatman17]

Turkey experiencing ‘inflation-devaluation spiral’ as lira heads south​

• May 25 2022 12:06 Gmt+3
• Last Updated On: May 25 2022 12:09 Gmt+3

Turkey is finding itself in a vicious circle of galloping inflation and a depreciating currency, said a leading emerging markets strategist, as the lira extended losses this year against the dollar.

The lira was trading down 1.5 percent at 16.34 per dollar at midday in Istanbul on Thursday. It has dropped by 19 percent in 2022 following a slump of 44 percent last year. The currency traded at 7.44 per dollar at the start of 2021.

The Turkish authorities have abandoned a recent policy of intervening in the currency markets and were now attempting to manage the lira lower, said Tim Ash, a senior emerging markets strategist at BlueBay Asset Management in London.

“With 70 percent inflation they need to constantly manage the lira weaker or face massive real appreciation,” Ash said. “They are in an inflation-devaluation spiral.”

The lira has weakened for 14 of the last 15 trading days.

The Turkish lira has dived against major currencies after the central bank, acting on orders from President Recep Tayyip Erdoğan, slashed interest rates late last year despite accelerating price increases. Erdoğan, who has sacked three central bank governors in three years, says higher interest rates are inflationary and also contradict with his Islamic beliefs.

Consumer price inflation extended a two-decade high to 69.97 percent in April. The central bank has indicated that it will not hike interest rate hikes to defend the lira and slow inflation -- Erdoğan opposes such a move. It has said it does not have to raise borrowing costs just because other central banks around the world were doing so to rein in inflation. Producer price inflation in Turkey stands at 122 percent.

Ash said the authorities may be managing a decline in the lira before setting a new level to defend it ahead of early elections. Turkey is due to hold presidential and parliamentary elections by June next year.
The central bank’s monetary policy committee is scheduled to hold a monthly meeting on interest rates on Thursday. Economists expect no change.

Turkey experiencing ‘inflation-devaluation spiral’ as lira heads south | Ahval

Turkey is finding itself in a vicious circle of surging inflation and a depreciating currency, said a leading emerging markets strategist, as the lira extended losses this year against the dollar.

ahvalnews.com

Erdogan is leading Turkey towards apocalypse!!!

Actually turkiye has a robust economy to manage these shocks

 

[Dalit]

How can Turkey get out of this trap? Will it benefit Turkey if they have one currency with their turkic nations in the Turkic Union?

Difficult. Unless non-Western blocs don't define their own monetary policies and currency this will continue. Right now non-Western nations are weak and divided. The Western nations can pick individual non-Western countries and wreak economic havoc at will. Non-Western countries use the dollar as their primary currency to trade. Once they ditch the dollar and use a collectively defined currency things will change. Can you see that happening? If the answer is no, there is no fix. You rely on Western mercy.

 

[KediKesenFare3]

Actually turkiye has a robust economy to manage these shocks

Turkey's economy is widely diversified which contributes massively to the monthly export records we're witnessing in these days.

Turkey exports more garments than Bangladesh, more vehicles and vehicles parts than many Western countries and more agricultural commodities than it's importing.

Turkey Exports By Category

Trading Economics provides data for 20 million economic indicators from 196 countries including actual values, consensus figures, forecasts, historical time series and news. Turkey Exports By Category - was last updated on Wednesday, November 6, 2024.

tradingeconomics.com

Unlike Iran and to a lesser degree even Indonesia, Turkey has a really strong industrial foundation.

The problems, however, are real and shouldn't be downplayed to gain political approval. Nevertheless, a state like Iran can only dream of having a solid overall economic base like Turkey.

So, in other words, the guy who started this thread is a troll. You perhaps know that type of 'Persian' who believes to be white and subsequently gets really frustrated whenever he sees an Arab, Turk or Pakistani with fair skin. That's him.