Author Topic: Military Chiefs Resign En Masse (Read 8238 times)

Ian · « **on:** July 29, 2011, 19:31:18 PM »

Gosh - could see the lira hit 3 to the Pound now!!!!

http://www.bbc.co.uk/news/world-europe-14346325

Seriously not good for stability - is this the last throw?

Julesp · « **Reply #1 on:** July 29, 2011, 21:54:28 PM »

Yes, my partner is saying this also, Big Problems here.

janmack · « **Reply #2 on:** July 29, 2011, 22:59:18 PM »

Not good.

valleyboy · « **Reply #3 on:** July 30, 2011, 10:56:37 AM »

quote:
Originally posted by Julesp

Yes, my partner is saying this also, Big Problems here.

Could your partner elaborate a little for the politically unaware of us Jules (in simple terms please).

Eric · « **Reply #4 on:** July 30, 2011, 11:53:17 AM »

The ruling party have got what they want. The Military Chiefs who would not 'toe the line' are now no more. The Prime Minister/President can now appoint sycophants into the empty posts and therefor any threat, to changes in the constitution or any other legeslation, from the military is now gone.

Scunner · « **Reply #5 on:** July 30, 2011, 11:56:29 AM »

So the rate should hit 2, not 3 then...

Eric · « **Reply #6 on:** July 30, 2011, 12:04:51 PM »

Probably

Ian · « **Reply #7 on:** July 30, 2011, 12:15:29 PM »

If they go quietly and no one objects?

Ps if the USA do not agree their debt ceiling by Tuesday then I suspect the rate will not go down as the weak dollar is the main reason for the weak lira although some unrest would equally damage it.

nichola · « **Reply #8 on:** July 30, 2011, 14:26:08 PM »

I believe the reason for the recent current exchange rate bump is to do with Turkey's credit rating and the overheating economy due to an inbalance between import and exports.

Colwyn · « **Reply #9 on:** July 30, 2011, 14:49:59 PM »

quote:
Originally posted by Scunner

So the rate should hit 2, not 3 then...

This probably depends on whether the money markets believe these event have made Turkey a more, or less, stable society. Or (more likely) whether the money men think it increases the amount of uncertainity about Turkey's immediate future. An increase in perceived risk, or an increase in uncertainity about risk, would, in orthodox economic theory (with which I don't always agree), lead to a weakening in the international value of the lira. If this happened 3 or more would be a more likely scenario unless other facors intervened (e.g. an increase in the Central Bank base interest rate). The money market on Monday should be interesting on this.

Author Topic: Military Chiefs Resign En Masse (Read 8238 times)

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