Turkish lira slide triggers fresh central bank intervention

[Foinikas]

Erdogan spent hot money on wars of aggression, foreign military operations and overseas military bases, and now he has no money to pay back.

I said before that Erdogan’s strategy is unsustainable. Without the ability of Americans to print money, Turkey learns from Americans to intervene in regional conflicts and build military bases abroad.

And he wants 3 aircraft carriers and he just bought a 4th drilling ship when a third one was a luxury. And they just got 2 P-72 ASW aircraft,they have 12 submarines and they want more and they also want more S-400s.

 

[HalfMoon]

I like your sense of humor.

I like your ignorance.

You should know that Turkiye is selling Nuclear components, Drones, Ships etc. to India.

 

[Apollon]

I like your ignorance.

You should know that Turkiye is selling Nuclear components, Drones, Ships etc. to India.

Maybe it should start selling toilets there and basic hygienic articles. That would improve living standards in India greatly.

 

[Arulmozhi Varman]

Ok lira is cheaper and you get more lira, but everything costs more lira. So you gain what?

I am not an investor to gain. The people who travel outside of country for tourism pay 1500 USD for a day stay in Maldives. For those people Turkey can now look like a cheaper option. Get my point? Not every increase is proportional to dollar increase like hotel rooms or car rentals. Petrol, food prices and some services can increase. Let's say if a Hotel.room is 1000 lira today and the lira goes down even further like 24-25 per dollar (for example), the rates might jack up to 1100 Lira.

The most impacted by dollar increase are food, gas and maybe medicines.

 

[Foinikas]

I like your ignorance.

You should know that Turkiye is selling Nuclear components, Drones, Ships etc. to India.

Well done. Turkey-Pakistan Friendship.

 

[thetutle]

I am not an investor to gain. The people who travel outside of country for tourism pay 1500 USD for a day stay in Maldives. For those people Turkey can now look like a cheaper option. Get my point? Not every increase is proportional to dollar increase like hotel rooms or car rentals. Petrol, food prices and some services can increase. Let's say if a Hotel.room is 1000 lira today and the lira goes down even further like 24-25 per dollar (for example), the rates might jack up to 1100 Lira.

The most impacted by dollar increase are food, gas and maybe medicines.

The hotel prices are pretty much the same as they always have been in Istanbul. check a booking website. All Turkish exports are also priced in USD. When you buy food in Turkey as a tourist you are paying more lira, you can check everywhere, the prices in Lira are going up. I dont see any bargains.

 

[HalfMoon]

Well done. Turkey-Pakistan Friendship.

Turkiye is building leverage over India and will pull the plug during war to leave Indian military high and dry.

 

[Arulmozhi Varman]

The hotel prices are pretty much the same as they always have been in Istanbul. check a booking website. All Turkish exports are also priced in USD. When you buy food in Turkey as a tourist you are paying more lira, you can check everywhere, the prices in Lira are going up. I dont see any bargains.

You have made your point. And I have mine.

 

[Messerschmitt]

I'm not sure, wouldn't they just rise the price of the goods sold in Lira. You just end up paying more lira, but the underlying price would be the same.

Prices of goods sold in Lira are already rising in Turkey and this is called Inflation. Producers have higher costs to buy and/or produce their products, which is why they adjust their prices to keep up with Inflation. Since wages among the population are not increasing as fast as the Inflation is rising they are effectively losing purchasing power and living in Turkey becomes more and more expensive.

In the mind of the seller in turkey, everything is priced in USD.

Not everything in Turkey is priced in USD but many imported goods and a lot of Turkish debt are priced in EUR and USD. Imagine the Turkish government or a Turkish financial institution or company took on debt denominated in EUR in October when the EUR/TRY exchange rate was at 10, meaning you needed 10 Liras to buy 1 EUR. Today the EUR/TRY exchange rate briefly exceeded 20. That same Turkish government or private institution would have to put twice as much Liras on the table to pay back their debt.

 

[thetutle]

Prices of goods sold in Lira are already rising in Turkey and this is called Inflation. Producers have higher costs to buy and/or produce their products, which is why they adjust their prices to keep up with Inflation. Since wages among the population are not increasing as fast as the Inflation is rising they are effectively losing purchasing power and living in Turkey becomes more and more expensive.

I understand that. If wages dont increase as fast as inflation its a temporary problem for the wage earner. They might not be able to buy food. But the food is produced and has a shelf life. It must be sold. If you price people out, you have lost. Eventually the food producers will source food locally. Food is not rocket science, everyone can produce it, there is an upper limit for food prices. There wont be a tulip mania. a loaf of Bread will not be worth 5 houses like tulips in holland a couple of hundred years ago. Lira is just a medium of exchange in an OK economy.

Not everything in Turkey is priced in USD but many imported goods and a lot of Turkish debt are priced in EUR and USD. Imagine the Turkish government or a Turkish financial institution or company took on debt denominated in EUR in October when the EUR/TRY exchange rate was at 10, meaning you needed 10 Liras to buy 1 EUR. Today the EUR/TRY exchange rate briefly exceeded 20. That same Turkish government or private institution would have to put twice as much Liras on the table to pay back their debt.

The seller prices his products in USD usually, The price of goods has remained stable in USD.

USD denominated debt is a problem, but arguably more a problem for the creditor. Suppose you are owed 50 million USD by a Turkish company. Let's say you personally. This is really more your problem. How will you get that money back? How many years in Turkish courts will you fight this company to get your money back?

Short answer, you will not see any of your money. So you will just restructure that debt and extend Grace periods and hope Lira stabilises.

You might not extend them any more credit, but that means the Turkish firms simple wont trade with you anymore. Turkey will become an export powerhouse.

 

[MMM-E]

Just a few days after you got banned, lira is now 15:1 USD.

and I came back today 1 USD = 13 TL



USD fall 20% in value against Turkish lira upon Erdoğan's statements


ERDOGAN = Turkey will no longer be a country dependent on imports

ERDOGAN = The Turkish government is presenting a new financial alternative for citizens' savings to soothe their worries over exchange rates-which have reached record highs in recent days

ERDOGAN = Stoppage (deductions) on companies' dividend payments will also be lowered to 10%

ERDOGAN = The state subsidy rate on the personal pension system will be raised significantly from 5% to 30% in order to boost its appea

 

[aziqbal]

I have a problem with any country that supports separatists in China.

Chinese created a fake story of those 11 people getting attacked by knives by Ughurs at the train station

it was later revealed that it was a Han Chinese

China used that excuse to murder and kill 1 million Ughurs and put them in Gulags and destroy mosques

truth hurts

 

[Communism]

and I came back today 1 USD = 13 TL



USD fall 20% in value against Turkish lira upon Erdoğan's statements


ERDOGAN = Turkey will no longer be a country dependent on imports

ERDOGAN = The Turkish government is presenting a new financial alternative for citizens' savings to soothe their worries over exchange rates-which have reached record highs in recent days

ERDOGAN = Stoppage (deductions) on companies' dividend payments will also be lowered to 10%

ERDOGAN = The state subsidy rate on the personal pension system will be raised significantly from 5% to 30% in order to boost its appea

Sounds like a combination of Evergrande "Wealth Management Vehicle" ponzi on top of a ponzi scheme along with capital controls.

Seems market took it as capital controls.

Will be interesting to see this develop in the coming weeks.

 

[IblinI]

Chinese created a fake story of those 11 people getting attacked by knives by Ughurs at the train station

it was later revealed that it was a Han Chinese

China used that excuse to murder and kill 1 million Ughurs and put them in Gulags and destroy mosques

truth hurts

Are british going to helped ukraine or not?

and I came back today 1 USD = 13 TL



USD fall 20% in value against Turkish lira upon Erdoğan's statements


ERDOGAN = Turkey will no longer be a country dependent on imports

ERDOGAN = The Turkish government is presenting a new financial alternative for citizens' savings to soothe their worries over exchange rates-which have reached record highs in recent days

ERDOGAN = Stoppage (deductions) on companies' dividend payments will also be lowered to 10%

ERDOGAN = The state subsidy rate on the personal pension system will be raised significantly from 5% to 30% in order to boost its appea

Turkey economy is doing great?

 

[Foinikas]

The forum relaxed fit a few days and we were having civilized conversations and suddenly MMM-E is back with full energy,pissing on every thread again...
The unofficial mouthpiece of Erdoğan on the forum,again trying to convince us of Turkish superiority and economic prosperity...he will soon say again that Turkey is richer than EGYPT+GREECE+ISRAEL together etc.