Lira

[nichola]

Last week the PTT changed the way it calculates the price for small parcels (under 2 kilos) and letters.

For example a parcel that two weeks ago would have cost 32tl now costs 88tl to send to Australia. Math isn't my strong point but that's one hell of an increase.

[Ian]

200% + increase - makes my 12% look good !

Seriously though you can see prices changing already and it can only continue to go one way - not going to be easy for local people and businesses  :-(

[nichola]

On the plus side this party is only in power because it was considered to be good at managing the economy. As things stand and if this trend continues then they are likely to lose the support of large swathes of the population as this will hit the ordinary workers and people the hardest as discussed on the previous page.

The next couple of years are going to be very interesting indeed!

[Ian]

Somehow you just can't see RTE going quietly unless his own party manage to force him out - but will they?

[busybee]

We too are saving our sterling for travel (the rate is never on our side lol), now pull more lira out of the bank.  In effect its like playing the stock market,, to know how to make the best of your money.  Swings and roundabouts.  Feel for the average Turk, who will feel it most, with increasing costs........how will RTE appease this situation, for his followers.  Can free wood, coal, fridges, new hospitals, roads, etc do it!!!!again........

[Colwyn]

A relatively quiet morning for TL against the $ and € but the £ is out of line and still sharply strengthening. CLICK 3.74.

[Rimms]

3.75 - it's getting silly now

[Colwyn]

In the pipeline.


First, the US's "tapering" of its economic stimulus has not yet started to bite - although there has already been plenty of impact in anticipation. Second, but only affecting the £ directly, UK unemployment announced today down to 7.1%. The Governor of the Bank of England stated the BoE would begin considering increasing interest rates when it hit 7%. I don't expect them to do so immediately but when it happens it will further strengthen the £. Third, the impact of whatever bombshell RTE is going throw into the kitty next (any guesses?).


In face of this I think my end April forecast of 3.89 is a little dodgy. Not that the number is wrong; merely the date - should have been March (February?).


P.S. An early answer to point 3. Today "Almost 100 prosecutors and judges are removed from their posts while 470 police are sacked or reassigned in Ankara."
http://english.ahram.org.eg/NewsContent/2/8/92230/World/Region/TIMELINE-Turkeys-political-crisis.aspx

[Scunner]

Don't bring your liras over here either - today's buy rate at the Post Office means you'll have to give them 4.21 TL to get a British poond.

[Colwyn]

Don't bring them over and don't take any back. Spend all you've got left on the last day. At 4.21 to convert back to £ it would almost be worthwhile buying something at Dalaman Airport!