Turkish Economy - News & Updates

[SouI]

Congratulations Turkey Lira 5.12 against us dollar.

Lets hope it goes down to 4tl!

 

[KediKesenFare3]

Lets hope it goes down to 4tl!

Why?

 

[SouI]

Why?

Why?? Are you even asking or just trying to troll me?

 

[KediKesenFare3]

Why?? Are you even asking or just trying to troll me?

I am asking. Why?

 

[what]

Has positive and negative consequences. If Lira improves against Dollar the debts of the companies that are largely in Dollar could be paid off easier and having a weak currency makes exports easier. So it depends on which effect is better for the economy really.

 

[SouI]

I am asking. Why?

Well because it is a good thing?????

What happened, did you fall on your head or what

 

[DemirkanTR]

Well, actually after seeing better foreign trade figures for last 3 months, I am also skeptical if we need lower exchange rates.

I think 1$=5 TL rate is realistic. From 2003 to 2013 TL was very overvalued and since 2013 we are still witnessing bad sides of over-valued TL.

In 2002: 1$ was 1.5 TL, in 2013 1$ still was 1.5 TL, at the very same term we had minimum %150 inflation rate (11 years combined) with simple logic in 2013 $/TL rate must have been minimum 3.75, but $ reached to that value in 2017!

Because of over-valued TL our export was lower than potential and we were importing like crazy! Even many industrialists left their sector and invest to construction or other luxury-consumption sectors.

So I think this level is good for dollar rate, especially if we consider increasing inflation rate. Lower rates will again whip consumption lust! We have witnessed a great exchange rate attack this summer and we shouldn't forget it can be repeated anytime if we continue to give account deficit. (And also don't forget that even they successfully attacked to Russian Ruble in 2014/15, which has a great account surplus due to natural resource export)

 

[Dai Toruko]

https://www.haberturk.com/son-dakika-ihracat-yuzde-13-artti-ithalat-yuzde-238-azaldi-2241961-ekonomi

 

[Bismarck]

Well because it is a good thing?????

What happened, did you fall on your head or what

Okay, why do you think TL is a good value? In my opinion, a lower exchange rate like 3 TL is more balanced between import and export value.

 

[DemirkanTR]

Okay, why do you think TL is a good value? In my opinion, a lower exchange rate like 3 TL is more balanced between import and export value.

No, it's not. Below there is a screenshot from my personal statistics table:

Green rows show exports, red rows imports and blue rows trade deficit. And numbers on the orange boxes are export/import ratio. As seen on the table, for July (exchange rate for dollar was 4.5 TL) it was %70. After rising of rates it started to increase and for last two months it is above %95.

So even for 4.5 TL, our import was too high. If rate becomes 3 TL, our import will skyrocket and export/import ratio will fall to %60's.

In my opinion we must keep rates in this level. Below is bad for us.

 

[BHarwana]

Has positive and negative consequences. If Lira improves against Dollar the debts of the companies that are largely in Dollar could be paid off easier and having a weak currency makes exports easier. So it depends on which effect is better for the economy really.

Nothing is like a good glass of fresh milk from lira. Enjoy

 

[SouI]

No, it's not. Below there is a screenshot from my personal statistics table:

Green rows show exports, red rows imports and blue rows trade deficit. And numbers on the orange boxes are export/import ratio. As seen on the table, for July (exchange rate for dollar was 4.5 TL) it was %70. After rising of rates it started to increase and for last two months it is above %95.

So even for 4.5 TL, our import was too high. If rate becomes 3 TL, our import will skyrocket and export/import ratio will fall to %60's.

In my opinion we must keep rates in this level. Below is bad for us.

I disagree, we are lowering the parity through monetary tightening policies.

Even if it would seem otherwise, with greater real interest rates imports will keep going down. It is because the credit volume in the economy will go down, as people will save more and more while spending less and less.

And of course this would destroy our domestic economy, but I already said I support this! We need more of our national capital (labor capital, liquid capital, capital as in other resources..) to be spent on exports, and that means sacrificing the domestic economy and having high unemployment.

So yes, I think it is great that we are having a tightening policy on our money supply. And that will inevitably lead to more valuable TL no matter what!

What needs to be done instead is eliminating the minimum-wage and making it so that the labor market's liquidity is maximized! That also includes adopting legislatures that allow employers to be able to fire any employee for any or no reason! And also provide them the power of adjusting their employees' wages daily without having to state a reason for it!

And thus the negative sides (reduction in competitiveness from increasing wage burden value-wise on companies due to the constant valuation of TL) of running a deflationary monetary policy would be eliminated.

 

[what]

Nothing is like a good glass of fresh milk from lira. Enjoy

View attachment 524202

Thats Raki, cheers

 

[Beno]

Where can I buy Turkish-made goods online?

 

[CAN_TR]

https://twitter.com/x/status/1072746683589627904