G20 / Obama & Erdogan

[Ian]

Without commenting on the internal politics I have just seen Obama chatting to Erdogan as they start to get seated at the G20 and it appears that there is an increasing level of respect for the man / his country.

If you link that in to Turkey's recent economic performance recently commented on by Hilary Clinton - see: http://www.voanews.com/english/news/europe/Clinton-Highlights-Turkeys-Growing-Economic-Leadership-132969488.html

You have to admit that in 10 short years the status of the Turkish people on the world stage has massively increased and they now have the respect that they once dearly wanted from the EU.

That might not help the "man in the street" but that is not my point.

[Scunner]

Maybe so, but what I can't grasp is why - when the nearby euro is in total turmoil - the new status and "economic leadership" you mention the lira had slid weaker. A year ago you needed around 1.95 lira to buy a euro. Today you need more like 2.45 liras to buy a single euro. Surely when the continent's finances are falling apart the lira should be strengthening daily?

[Ian]

There are many on the forum much more astute than I am on that particular subject but I firmly believe that is simply because the lira is inextricably linked to the US Dollar and when the dollar sneezes the lira gets a cold as well.

Now if RTE's next move over the next decade is to progressively link to the YUAN you may see a much stronger lira  

[starman™]

Turkish exporters have been crying out for a weaker lira. Maybe they are following what the Chinese do by making their currency weak to attract more exports?

[Ian]

quote:Originally posted by starmanTM

Turkish exporters have been crying out for a weaker lira. Maybe they are following what the Chinese do by making their currency weak to attract more exports?

Very good point - never thought of that but it does make sense.

[Scunner]

I guess the reverse effect on importers doesn't matter much since they have the 5000% import tax on everything already.

[Ian]

Lol - spot on - you are now sounding like an economist