Lira

[Scott and Lisa]

does this mean banks will raise the interest rate? the bonds on offer appear to be the same?

[Scunner]

If using billions of dollar reserves to buy lira didn't work, and significant hikes in interest rates doesn't help after the first 12 hours, can we conclude that this is very serious indeed..?

[kevin3]

While the causes of these problems remain unchanged I think the answer is yes.
And I don't see any changes in the near future, sadly.

[corbindallas]

Yes interest rates are already being put up in banks see my seperate post on Garanti.

[JohnF]

If using billions of dollar reserves to buy lira didn't work, and significant hikes in interest rates doesn't help after the first 12 hours, can we conclude that this is very serious indeed..?

Think we need to wait till the American markets open to get a better idea of how this bump will effect things.

JF

[Jacqui Harvey]

Jacqui I am trying to but some tl from Debenhams do you know if they deliver as I can not find a delivery option and we don't have a Debenhams near us, thanks   

Sorry Karen, I don't know if they deal online, why not ring up and ask?  Phil works in Aberdeen so it's a short walk to Debenham for him.

[Colwyn]

The rate is bouncing about just under 3.7 at the moment. We will have to see if it settles there today and for the rest of week to tell whether the CBank move has worked. This may not seem a huge gain since the rate was only 3.75 when the decision was announced but probably most of the benefit was gained on Monday when the announcement of the emergency meeting immediately reversed the run on the lira that was looking only hours away from going over 4.00. There was almost universal expectation of a rate rise so markets already took it into account. The "extra" small improvement may represent the response to the unexpected large scale of the hike. On the other hand I have read one commentator wondering if the hike was too big to be credible and comparing it with Norman Lamont hike from 10% to 15% in 1992 which didn't work. I do wonder how long CBank can maintain this very higher rate. I'm glad I'm not paying off a Turkish credit card or a small business looking for a bank loan.

[JohnF]

Decent article in todays FT: http://www.ft.com/cms/s/0/007a630e-88c4-11e3-bb5f-00144feab7de.html#axzz2rmiwUb2n

JF

[Scott and Lisa]

Sell Rate
3.690172 TL

Back to normal

[Jacqui Harvey]

Debenhams have changed their prices today so it's now 3.61.