Just hit 3.30

[Ian]

I remember one of our first friends in Turkey telling us at a time when it moved quite quickly from 2.2 to 2.5 and I was concerned - he said:

"This will only really affect YOU if you are changing your lira back to sterling"  - so I suspect you are right that the person in the street will not notice the exchange rates as much as we think.

[Colwyn]

The £ is not particularly significant for Turkey; why would it be. a small European currency? What is important is the $. That is how it pays for international transactions.

[Ian]

I think his real point was it only matters if you are exchanging currency and a meal out next week will still cost him about the same in lira irrespective of the exchange rate.

Now I know the current crisis will filter through to the everyday cost of living prices over the next few months but the man in the street is not feeling the swings as others do which is why "the neighbour" had no real idea of the rate.

And as regards the "cost of living" - it amuses me that "we" often think we are doing well to get 8% interest but if you factor in an annual 10% increase in Turkey there is no real "gain" - you are just running to keep up  

[Colwyn]

Steady Ian, next thing you know you will be wearing a Gannex mac, puffing on a pipe and telling us "Of course, the Lira in your pocket will not be devalued".

[Ian]

Lol 

[Colwyn]

I has been a good day for the lira which has bounced back by about 1.5%. Now at 3.50 and nearly back to the 3.48 where it started Friday.

[Ian]

SBIST100 (stock exchange) up as much as 5.5% today.

Maybe just a correction as things swung a little bit too far last week?

Also interesting quote on another forum:

After taking all my lira out in July at 2.93 back to sterling as advised by my bank manager , we have now put it back to lira today as advised by the same man.

[Scunner]

If he was that good he's have told them a while before 2.93...

[Ian]

It did make me think though as I have a neighbour who told me in early July that he had been advised by his bank manager at HSBC to put his lira into sterling - we were talking about a lot of money - I thought he was going to a lot of trouble for nothing - shows what I know

It does make you wonder if this was expected in some circles?


PS maybe we should all talk to our bank managers more ?? I wonder if Alper saw it coming ?

[Scunner]

I can tell you that Alper consulted with his top brass in Garanti Istanbul who declared "It will not go over 3".