Lira getting Stronger - Why?

[JohnF]

Turkey's Central Bank has shrugged off Erdogan's attempts at intervention and made small interest rate rises.

Someone will be preparing their cells in Sivilri prison...

Suspect the freezing of the accession process to the EU by the European Parliament hasn't helped.

JF

[Colwyn]

freezing of the accession process to the EU by the European Parliament

So unfair after Barmy Boris saying in September that he supported Turkey's accession to the EU when he was in discussion with the W***erer in Ankara. (You know, that Boris chap who warned that Turkey was imminently about to join the EU and 70 million Turks would be heading for the UK unless we voted Brexit and, now we are going to leave, is advising people as to who should join!).


Back on topic ... the CB's move seems to be failing already. The dollar hit 3.44 this afternoon - another record low for the lira.

[stoop]

Yes Colwyn but you see Boris knows we are leaving the EU so he won't be that bothered if they join.

He probably also realises it will never happen. They won't join in his lifetime.

The pound appears to be moving back against most currencies. I think only the Bitcoin seems to be holding up well and that's probably due to American buyers post Election.

I think we were buying lira at around this level just before the referendum.

[JohnF]

Quote from speech last night by the wee fella:

“I have nothing against the independence of the Central Bank, but I cannot allow my people’s will and rights to be taken away with high interest rates,”

Kinda sums his view up.

JF

[Colwyn]

I think we were buying lira at around this level just before the referendum.

Yep, the pound and the lira are equally weak.

[davybill]

Quote from speech last night by the wee fella:

“I have nothing against the independence of the Central Bank, but I cannot allow my people’s will and rights to be taken away with high interest rates,”

Kinda sums his view up.

JF

Well the Bankers have taken no notice, and raised the interest rate 5o points.

[Colwyn]

But it didn't work. TL is finishing the day at 1.5% down against the $. I suppose RTE will use this as evidence that raising interest rates doesn't work - quite apart from interest being usury and so is against Islam.

[JohnF]

I'm not sure if this is in the right section, maybe I should be posting this in the jokes section...

That paragon of truth and honest reporting, The Daily Sabah, puts a whole different spin on the wee fella's meeting on Tuesday and has come up with ten outcomes.

The first is:

The economy is strong and solid: The Turkish economy is strong, resilient and solid. The depreciation of the TL against the dollar is not due to the dynamics in Turkey but rather to global factors. There is no currency risk in Turkey.

Thirty seconds with XE confirmed that not only is the lira losing ground (rapidly) against ALL major currencies, it's also doing pretty badly against the Indian Rupee, the Albanian Lek and even the Chinese Yuan, which incidentally is reckoned to be in as bad a place as the lira.

On the plus side, it does seem to be holding its own against the Colombian Peso.

Full article here.

JF

[kevin3]

      4.40 TL                                    Garantee Bank

[Colwyn]

And the dollar has pinged 3.5. Seems just a few days ago we speculating whether 3.4 would be the sticking point. Oh, it was just a few days ago.