Lira getting Stronger - Why?

[JohnF]

So far the central bank hasn't made any efforts to prop up the lira (not that they're short of the funds to do it) so maybe they're going to see how far it'll go. 

Looks like 3.4 to the USD was as far they were comfortable with.  A meeting on Friday between the state bean counters and the TCB led to it being reported that the TCB will "take necessary measures to support financial stability".  Feck knows what that means, but its about time they did something else it could be four to the dollar by the end of the month.

JF

[JohnF]

Another important meeting tomorrow to discuss lira - some saying the government might allow the TCB to increase interest rates.  The wee fella will be spitting feathers if that happens!

JF

[JohnF]

Meeting cancelled.  Everything in the garden is rosy according to the PM:

Speaking to reporters on Nov. 22 at Istanbul’s Atatürk Airport, Yıldırım said “there is nothing to worry about in the economy,” despite recent turbulence.

Oh, that's fine then.  Nothing to worry about.

JF

[Colwyn]

"Everything will be alright in the end. If it isn't alright then it isn't the end". Just a few people making a fuss about nothing. Probably Scottish - like ruddy Storm Angus that battered us on our Exeter get-away over the last few days. 3.363 TL to the $  is perfectly alright. Isn't it?


Oops, 3.367

[JohnF]

Aye, it wouldn't surprise me if the wee fella phoned them up last night and cancelled the meeting - I mean, raising interest rates? 

I read elsewhere that they're blaming the weakness of the lira against the dollar on Trump now, but what about sterling (was 4.21 this morning, down from 4.15 on Monday morning), who they gonna blame for that?

JF

[davybill]

Got 4 .16 at Seker Bank this morning.

[kevin3]

   Yesterdays meeting was cancelled "by order".  It will take place today, chaired by guess who.??         


                                                                                                                                                                   HDN

                                                                                                                                                             

[Colwyn]

RTE has gone on TV to say that Turkey's interest rates are too high, and the CB is independent but ... the $/TL rate shot to 3.415 within a couple of minutes but has clawed back a little since.


http://uk.reuters.com/article/turkey-economy-erdogan-idUKI7N1D3004

[JohnF]

Yesterdays meeting was cancelled "by order".  It will take place today, chaired by guess who.??

Aye, and that went well.  Lira continues to weaken against GBP/USD/EUR.

Mibbe he'll tell the "independent" central bank to drop the rates and then we'll really see the lira plunge.

Hope they didn't burn al those million notes...

JF

[Colwyn]

Turkey's Central Bank has shrugged off Erdogan's attempts at intervention and made small interest rate rises. Overnight borrowing rate was unchanged at 7.25% but overnight lending went up be 0.25% to 8.5% and one week repro up 0.5% to 8%. The dollar/lira rate immediately improved to 3.37 but since sunk back to 3.39.