I know this is a subject close to the heart of many, and of general interest to most, so I though I'd share with you some 'thoughts' from my friend of fourteen years who works as Broker in Istanbul financial services.I contacted her to ask what has happened in the last few weeks to drive down the value of the TL to the £, and this is the unedited response provided:-
"At the last meeting of Turkish Central Bank interest rates was left at the same level but took some steps to control the 'let's say' speculative short term capital coming in and out. This changing on the policy of Central Bank seems to weaken TL against all currencies of course, not only GBP. Eventually interest rates arose to 8.42% from 7.98%(which was historical deep). There has been 8 bilion dollars foreign capital exit in last two months. I guess we should call this as correction and 75% of this correction has been done (in stocks,currencies and bonds) another 25% might come as there always be an an exaggeratian after a trend. So If I see 1 pound to 2.750 TL I'm not surprised.(Also I think -to satisfy the businness environment the government supports weak TL anyway. Since there is general election this summer ). Of course you know there mihgt be something else bad around the world and affect us and we'll be talking about different numbers, this is always possibility."
Just like to stress that this is not any form of financial advice, but simply a view from the 'City' (Istanbul rather than London)on a subject dear to our hearts, the value of the Pound to the TL
. Hope you find the few lines informative.
