pound/lire

[lindacarl]

Dippz
Does that mean that if they don't give the 10% tax cut to the textile manufacturers - as they are now getting 10% extra due to the revaluation that we might see a 20% revaluation?

It's too late & I've been FAR too long without sleep (38hrs - insomnia is a total bitch) so not sure if that makes sense - my brain hurts! I'll look at tomorrow.

I'm with you Dippey - 3.00 & I'm cashing in too. There appears to be no reason for the YTL to be so strong especially with all the debt they have taken on in the last few years.

Linda

[KKOB]

Fethiye Times are reporting the rate as 2.66

[Dippey]

I base it on Turkeys inability to grasp basic economics, most actions are knee jerk reaction and short sighted, without assessing long term stability. Turkey is famous for being the "basket case" in economics, every 4-6 years something incredible happens badly.

Dippz

[mike and hilary]

Maybe the Turkish government has tied the Lira too closely to the US dollar because that's fallen a lot lately too.
Just an idea.

Mike

[stoop]

No - the US dollar is falling because, basically, the USA is knackered! They have a huge trade deficit and have borrowed too much money. China is the next big thing, economy wise.

The only link is that no one wants Lira and no one (apart from the week countries) wants the dollar.

Stoop ( ex Financial Consultant:D)

[stoop]

http://www.fethiyetimes.org.uk/cms/index.php?option=com_content&task=view&id=332&Itemid=58

[lindacarl]

Mike & Hilary
I guess you are new to Turkey & the exchange rates. LOL
If anyone wants to see what has happened over the past 12 years - take a look below.
Echange rates taken 1st January each year.

Jan 94....  22,074 Lira to £
 "  95....  60,853 "    
 "  96....  94,428 "
 "  97.... 185,586 "
 "  98.... 342,846 "
 "  99.... 518,771 "
 "2000.... 878,414 "
 "  01...1,003,537 "
 "  02...2,142,037 "
 "  03...2,689,696 "
 "  04...2,546,403 "
 "  05...2,628,116 "    or 2.628YTL
 "  06...2,326,822 "    or 2.326YTL

The last 3 years have gone the opposite way to 'normal' for the Lira.

I remember the times of 100% inflation well as I was going to Turkey before this chart started.
Is the economy 'really' that much sounder now OR is the stability artificial?
I know the USA have given Turkey lots of loans - because of them allowing them to land troops.
Is it these loans that have stabalised the economy?
Inflation is still in double figures - so where will the Lira stabalise?
Dippz - appreciate your input.
I was looking at investing money once it reaches 3.00 but doing some homework this morning , now I'm not so sure.
Linda

[Dippey]

I wouldn't and have never had any trust in the turkish economy, Artifiscal stability, taking 6 zero's out of your currency is not the answer and deflects from the real issues, soon the exchange will be the worst ever on record, and how anyone can say 2,630,000 (being the real figure) can say its to strong, its as weak and meaningful as the Zimbarbwe exchange. I spent the last seven years explaining to my Istanbul office that we only deal in US$/Euro or £. A competitor of ours, taking any orders they could get, dealt in lira contracts, after 2001 they realised why we didn't!!
If I had any lira sitting in a bank account i would exchange it for £'s. If I was to invest in currency movement i'd do the $ v £ when it hits 1.95, may go a bit higher but will always drop back down to 1.55-1.70 within three months.

ex Financial Controller, Europe MiddleEast Africa (retired 30 years early!nah nah nah).

Dippz

[stoop]

Sound advice Dipps.

[mike and hilary]

Yes, Lindacarl I suppose I must be new to ... etc. What a laugh! I found your posting patronizing. It's just possible that you don't know everything about Turkey and its economy. How smug!

Mike