Turkish Lira continues to slide

[Rimms]

We have trips to Rhodes, Thailand and the UK planned in the coming months, it seems to me that I would be better off using some of the lira we have here to cover our day to day Turkish running expenses and using the pounds that come in via my pension each month to fund our travel plans?

[Scunner]

Briefly went over 3.21 this morning. I remember 2.21 not too long ago

[blueclad]

Our local Asda @ 9 am today when the booth opened Rate was   TLR 2.992.70  @11.15 am  its up to TLR  3.O25.40,, so just bought £200 worth ,. for starters for our spends for our next Calis chill out visit , if it goes up again ill buy more as i cant see it  staying this high for long
 i remember one time we had tlr 136,000 to £ then next day tlr 147,000 to £ that was the good ole days   

[cef]

Everything affects the price of Efes - don't forget your Chaos Theory, and butterfly wingbeats in Central Asia causing hurricanes in the Caribbean.

I am expecting Erdogan to announce soon that this is a conspiracy by enemies of Turkey and that he irrefutable evidence of a concoction of different groups - Lufthansa, BBC, CIA, Israeli agents, Kemalists, Egyptian generals, Turkish generals, CHP and others - are using telekinesis to manipulate the money markets. This would be in line with the barmy things he has been stating publicly of the last six months. Not new that he should think these thoughts: just new that he has been expressing them so openly.

LOL, 'Nail on the head' Colwyn    A very slippery slope.........



PS: Totally agree, that the ONLY true Cider, is of course only made in Somerset  

[usedbustickets]

Currently hovering around 3.2TL to £.  Considering only ninety days ago the rate was 2.75TL to £, that is a fall in value of about 14%, which is spectacular in anyone's accounts.  Yes that's a £140 lost for every £1000 you have invested in a TL account, you'll need some interest rate rise to recover that position!!

I know the Turkish - and indeed its neighbours - economic situation is not being helped by the heightened problems in Syria, but Turkey has bigger issues with what looks like a Government directed Central Bank Governor.  He says that there is no need to worry about the exchange rate issue, nor indeed inflation (8.8% and likely to rise).  He does not see the need to increase interest rates until at least the end of the year.  The man sounds a fool, but you suspect that the arm of Erdogoan is up his back, like a ventriloquists doll.  Anyway his views will be sorely tested in the coming days by the market - read speculators - and his 40 billion dollar of foreign reserves available to defend his ludicrous position, won't last long when the speculators press the button.

[Colwyn]

In September the US Federal Reserve is to cut back on pumping cheap money into the financial markets, much of which found its way to Turkey and fuelled the AKPs "economic miracle", so now Turkish economy is heavily dependent on the backing of private investors. How does Erdogan achieve this? Here is a view from Germany’s Spiegel (20 August):

In the [post-Gezi Parki] hunt for someone to blame, the Turkish government is increasingly setting its sights on one group: the financial industry. In the first weeks of the revolt, Erdogan was already agitating against the foreign "interest rate lobby," vowing to "choke" speculators [...] The government has since launched investigations into the stock market. In recent weeks, the authorities have collected the emails, telephone records and chat messages of various international financial institutions, including Deutsche Bank, Credit Suisse and Citigroup. The government is now reviewing the banks' communications with their foreign customers since the protests began in Turkey, as well as scrutinizing accounts. The investigators are searching for evidence that regime opponents manipulated the markets to fuel the uprising against Erdogan [...] Erdogan's aggression is also being directed against the economic elites for the first time. The premier has accused Koç Holding, Turkey's largest corporation, of "cooperating with terrorists." The Koç family controls more than 100 companies worldwide, including energy businesses, shipyards and supermarket chains, and it employs more than 80,000 people. During the Gezi protests, the Divan Hotel in Istanbul, also owned by the conglomerate, gave shelter to demonstrators fleeing police violence. In late July, tax investigators accompanied by police searched 77 offices of the Koç energy companies Tüpras and Aygaz, and seized computers and documents. The parent company's stock price plunged after that, with Koç Holding losing more than €1 billion ($1.33 billion) in value within three days.


Not surprisingly the authors suggest that all of this is “unsettling” investors. Really? Wow! Is Erdogan now clinically paranoid? After the TL falling 2% against the £ yesterday it has fallen by a further 1.5% as I write this.

http://www.spiegel.de/international/business/erdogan-endangering-economy-with-financial-sector-witch-hunt-a-917370.html

[Scott and Lisa]

Interesting, so would you say it's only a good idea to invest money in the Turkish banks, if you can eventually spend it in turkey, and not have to change it back into gbp?

[usedbustickets]

Yep that would be about it, keep it in TL or take a probable big lose on exchanging back into sterling.  And/Or  hope that the rate improves again in the long run......... but not with these mugs in charge of the country's economy!!

[chris35]

A bit of advice please. I have a lira account that I have no intention of drawing out in sterling ( unless the lira collapses completely). Surely it's in my best interest to invest more sterling into it while the rate is so good. Correct or not??

[Colwyn]

I have read that a contributory factor in the current currency slide is that Turkish individuals and corporations that have large amounts of easy-access lira in their portfolios are shifting it rapidly to the $ before they lose any more. I cannot vouchsafe this "information" and, of course, anyone who says they know what is going happen in the future is . ...... [you insert a suitable description!]