Calis Beach and Fethiye Turkey Discussion Forum
Information and Services in Turkey Section => Banks, Interest, Money Transfers, Insurance => Topic started by: usedbustickets on July 16, 2014, 10:01:58 AM
-
If you wonder what is happening currently to interest rates and exchange rates in Turkey, then look no further than Reg Erdogan's battle against the 'interest rate lobby', and the bullying of the Central Bank Governor to drive down interest rates. All being played against the Turkish political landscape of the two elections this year, the recent local elections and of course the Presidential Election, where charmer Reg is standing on behalf of the AK Party.
Below is a link to a very good article that summarises nicely what is happening politically and economically with Interest Rates/Exchange Rates in Turkey at the moment, plus an indication the consequences of what could happen (well almost certainly will IMHO) if Reg gets his way and continues down this economic road. Well worth a read cos it does impact on us all whether in savings rate or exchange rate, and of course inflation rate impacting on any Turkish capital you have.
http://www.al-monitor.com/pulse/originals/2014/07/cetingulec-turkey-interest-rate-lobby-exporters-exchange.html# (http://www.al-monitor.com/pulse/originals/2014/07/cetingulec-turkey-interest-rate-lobby-exporters-exchange.html#)
Enjoy
-
http://http://www.hurriyetdailynews.com/turkish-central-bank-trims-benchmark-interest-rate-for-third-month.aspx?pageID=238&nID=69266&NewsCatID=344
-
Cetingulec's main argument is that it would be risky to lower interest rates dramatically before fixing Turkey's substantial current account deficit. Two days later he was reporting in the same publication that Turkey has actually made large steps towards this and it is likely that the reduction achieved this year will surpass the Government's target with this year being a large improvement on the 2013 performance.
http://www.al-monitor.com/pulse/originals/2014/07/turkey-economy-account-deficit-dropped-gnp-ali-babacan.html (http://www.al-monitor.com/pulse/originals/2014/07/turkey-economy-account-deficit-dropped-gnp-ali-babacan.html)