Author Topic: 3tl to the dollar - job done  (Read 2365 times)

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Offline usedbustickets

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3tl to the dollar - job done
« on: September 04, 2015, 21:18:14 PM »
The glass ceiling/floor of the tl to the dollar FX rate was smashed today as a dollar now buys you 3tl.  A big psychological hit for the Turkish economy as most imported goods will now cost more including fuel, and not forgetting the amount of debt that is in dollars too.  Now this barrier has been smashed, where now for the tl...4tl to the $ ?? Could we see the start of economic free-fall for the tl next week?

And still large numbers of Turks will vote for Reg and the AKP in November... unbelievable!!

And for those of you interested in the sterling rate, that has hit nearly 4.60tl to the £ today.



Offline JohnF

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Re: 3tl to the dollar - job done
« Reply #1 on: September 05, 2015, 09:23:49 AM »
A big psychological hit for the Turkish economy as most imported goods will now cost more including fuel, and not forgetting the amount of debt that is in dollars too. 

The tip of the iceberg.

The vast majority of commercial rental contracts in Turkey are priced up in USD or EUR.  Foreign staff (and higher level Turks) who work in the legal, financial and commercial sectors in Istanbul and Ankara are all paid hard currency salaries - and there are a lot more of those than many would think.  If firms can't attract high calibre employees then Turkey ends up with a "brain drain" with the obvious knock on effect in efficiency and performance.

As the lira loses value, an increased number of sectors that traditionally use the native currency will start using USD & EUR as their base operating currency, by the time their products or services get to consumer level in TL they will then be subject to fluctuation dependent on the USD or EUR rates. 

The effect of this on the man/woman in the street will...  oh wait a sec, we've been here before.  From the time you pick up the loaf of bread, to the time you go to pay for it you find the price has jumped by 20%.

And still large numbers of Turks will vote for Reg and the AKP in November... unbelievable!!

Still not convinced they will go to the polls unless guaranteed victory.  Wont say any more in case I get accused of being "forbidding" by Colwyn.

JF






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