Cyprus-Forum.com

[Maximus]

There has been a 30% devaluation in the TL over the past year compared to the Euro and the US$. The TL has lost 40% of its value over the past 5 years to the same currencies.

What a "haircut".

[Maximus]

correction*

That's 46% of the past 5 years, and it keeps going.

[Kikapu]

correction*

That's 46% of the past 5 years, and it keeps going.

World’s 4 major currencies appreciation against the Turkish Lira over the last 5 years and counting!

Swiss Franc

11111.png

US Dollar

22222.png

Euro

33333.png

British Pound

44444.png

[bill cobbett]

correction*

That's 46% of the past 5 years, and it keeps going.

World’s 4 major currencies appreciation against the Turkish Lira over the last 5 years and counting!

Swiss Franc

11111.png

US Dollar

22222.png

Euro

33333.png

British Pound

44444.png

Yes and to bring things bang up to today...

1 £GB will today buy you 3.80 TL, the TL having lost a touch under 2% in trading today...!!!

(and presumably having lost similarly against other currencies)

The markets won't be fooled, if interests rates don't go up, the pit is near bottomless.

[Maximus]

That's lots of money flying out of Turkey right there.

I wonder how long it will take until the reality sets in.

[Kikapu]

Lira melts 29 percent against dollar in 9 months

26 January 2014 /İSTANBUL, TODAY'S ZAMAN WITH WIRES

Pummeled by lingering domestic political tension and a US plan to cut monthly money stimulus, the Turkish lira has suffered serious losses against foreign currencies, particularly the US dollar, losing 29 percent of its value against the greenback since May.
The currency has also fallen by 35 percent against the euro and 38 percent against the British pound.

The lira tumbled beyond 2.33 to the dollar on Friday, meaning Turks now need more than twice as many liras to buy dollars as they did during the currency's peak six years ago, a costly decline for a nation heavily dependent on imports. Bankers said the central bank sold around $3 billion on Thursday in its first direct intervention in the foreign exchange market in two years, but the move did little to calm the markets.

The Bugün daily quoted economist Erdinç Tokgöz as saying that the latest declines in the lira's value reveals a “real devaluation.” Tokgöz blamed Prime Minister Recep Tayyip Erdoğan's “increasingly authoritarian style” along with the central bank's ineffective monetary policy for exacerbating the losses in the lira. “Both local and foreign companies have rushed to drop the lira and buy dollars. This will see foreign capital leaving Turkey markets,” he added.

The Turkish Central Bank's net foreign exchange reserves stand at around $34 billion, economists estimate, which means it can sustain dollar sales at current levels for weeks rather than months although the bank has said all of its reserves, including those held with it by commercial lenders, could be tapped if needed. Its gross reserves stood at $107 billion as of last Friday.

http://www.todayszaman.com/news-337678- ... onths.html

[bill cobbett]

The Turkish Central Bank has raised interest rates, albeit the over-night rate, to a whopping 12%.

The BBC reports...

"... The Turkish central bank has raised its overnight lending rate to 12% from 7.75% after an emergency meeting.

It also increased the overnight borrowing rate to 8% from 3.5%.

The move was intended to help stabilise the value of the lira, which plunged in recent days amid ongoing turmoil across emerging markets.

The lira immediately strengthened after the central bank announcement, to 2.2 lira to the US dollar, from 2.253.

The Turkish central bank had been slow to act amid fears that a rate rise could hurt the economy. ..."

http://www.bbc.co.uk/news/business-25939187

[Demonax]

Black Wednesday in Ankara?

THE rot has not been stopped. Last week, it seemed as if the Turkish authorities were in denial. Inflation was too high, the current account deficit was too wide but the central bank failed to push up interest rates; the lira was sinking. But the bank acted decisively last night, pushing the rate on 7-day repos to 10% (from a theoretical 5.25%) and overnight rates by more than four percentage points. The initial reaction was positive, with the lira rebounding and Asian equity markets moving higher.

But the initial reaction was short-lived and the Turkish lira is now lower than it was before the move...

http://www.economist.com/blogs/buttonwo ... -markets-0?

[Demonax]

Lira stubbornly low although CB bids adieu to stable rate policy

Turkey's central bank finally used its most radical and effective weapon -- an interest rate hike -- in its fight with a recklessly depreciating lira on Tuesday evening, a move much larger than market expectations and one analysts saw as belated.

The lira jumped to 2.1650 per dollar from 2.2530 before the move, but the lira was down again in the late afternoon on Wednesday at 2.255 against the dollar due to growing concerns in the emerging markets. Analysts warn that the rate hike will apparently have a more drastic impact on the overall economy, which was already shaken by signs of a slowdown.

http://www.todayszaman.com/news-337976- ... olicy.html?

[Kikapu]

What ever happened to that "great idea" of having a "Turkish Lira Zone"?

Where's VP?