Turkish Lira on the rise?

padisha


Joined: 09/07/2011
Posts: 131

Message Posted:
26/10/2011 14:43

Has the Central Bank intervened to halt the slide in TL? Now back down to 2.81. Any forecasts from you people in the know?

marine


Joined: 21/07/2011
Posts: 73

Message Posted:
26/10/2011 14:48

Probably something to do with the earthquake in Turkey.... I would imagine

tarry67


Joined: 16/05/2008
Posts: 1053

Message Posted:
26/10/2011 18:05

Turkey devalued the TL to help exports I was informed, and it will drop again soon. One of the uk finacial papers was advising people to purchase TL last month, and it seems like they were correct now its dropping again.

passionflower


Joined: 20/09/2011
Posts: 168

Message Posted:
26/10/2011 18:10

2.25 before to long

Jovial_John


Joined: 31/01/2009
Posts: 1024

Message Posted:
26/10/2011 19:00

Wait a minute!

The original post referred to 'halting the slide' which is correct. The lira is not dropping - it is going up. If it was dropping the you would get more for £1. It has been dropping in value for several months now which is why people were advised to buy - advice which is now proving correct because it is gaining strength.

martinD41


Joined: 06/09/2010
Posts: 3001

Message Posted:
26/10/2011 19:03

Hooray!!!!!.Perhaps I'll get my money back

slatnumber7


Joined: 25/08/2010
Posts: 299

Message Posted:
26/10/2011 20:35

Down a bit, 2.80570 this afternoon at Iktisatbank, still much better than a smack on the belly with a wet fish.

padisha


Joined: 09/07/2011
Posts: 131

Message Posted:
26/10/2011 20:53

Thank you Jovial John



You are the only one to grasp my question. Thought İ was having a senior moment for a while..At least we understand the situation.



Padisha

Swany



Joined: 01/12/2009
Posts: 255

Message Posted:
26/10/2011 22:47

Yes Central Bank has intervened. They have changed their policy and doubled the overnight interest rate. They have left the normal interest rate untouched but there is a feeling that this could go up too. It will all depend on if this and other actions have the desired effect of reducing the trade deficit.



The other efforts: - were increasing tax on luxury items, selling reserve dollars, increasing the banks’ reserve requirements on deposits.

Swany



Joined: 01/12/2009
Posts: 255

Message Posted:
26/10/2011 22:50

“Extraordinary times require extraordinary measures and the central bank is doing that,” Tevfik Aksoy, chief economist for the region at Morgan Stanley & Co. in London, said by e- mail. Basci is “aiming to achieve stability in the currency, slow credit expansion, tighten monetary policy outright and take measures to allay concerns regarding foreign-currency reserve sufficiency.”



Your pound (€ & $) will buy you less TRY and maybe just maybe your TRY intrest rate will go up a little but I am not sure on this one yet.

BizziLizzi


Joined: 02/08/2011
Posts: 855

Message Posted:
27/10/2011 00:19

But will be price of goods in the shops (which rose to counter the declining purchasing power of the lira) go down again?

Jovial_John


Joined: 31/01/2009
Posts: 1024

Message Posted:
27/10/2011 10:02

Message 11.- NEVER!



Message 10. That all seems entirely logical - but HSBC reduced interest rates by 0.5% 2 weeks ago; down to 8% now.

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
27/10/2011 10:36

The main problem with the Turkish economy has been the trade deficit and the effective devaluation of TL plus more taxes on luxuries will hopefully help narrow that gap significantly. The other trouble is of course the economic crises in EU and as the greatest trading partner for Turkey it will mean less exports to Europe. Hence the need to try to expand the market base towards Asia, Middle East and Africa. It should all help. Now you can find Turkish exporters visiting all corners of earth. Twenty years ago they waited for the customers to knock at their doors.

ismet

Swany



Joined: 01/12/2009
Posts: 255

Message Posted:
27/10/2011 16:33

Re 10. If you put rates down when all the talk is low rates, then when you have to follow the market to put them up you are really leaving the same! Clever banking or cynical profiteering I will leave you to judge?