Cyprus-Forum.com

[Maximus]

Turkey National Debt Is Low – So Why Are They In Trouble?

Read more at: https://commodity.com/data/turkey/debt-clock/

Good read RW.
I conclude the correct word for Turkey is not bankrupt. It's broke.
Bankrupt is when you don't have enough money to pay your debts.
Broke is when you don't have enough money to survive.
Which of the 2 is worse, I am not sure, I think broke is worse. Let the economists of the forum tell us

Potato or Potatoe?

And if that is the case, it remains to be seen how the government would be able to fund the potentially expensive and inflationary plan.

Turks sold about $1 billion yesterday after his announcement that they would get a deposit guarantee scheme, and exporters problems would be alleviated with futures contracts.

The government would cover losses incurred by lira deposit holders in cases where the lira’s depreciation against foreign currencies exceeds the banks’ interest rates.

Erdogan also promised exporters on Monday they would get foreign exchange forward rates from the central bank to mitigate volatility risks, and increased government contribution to private pensions from 25 percent to 30 percent.

https://www.aljazeera.com/economy/2021/ ... ation-plan

Some economist are calling this an epic interest rate hike without hiking interest rates. “If the central bank continues to give money at 14 percent, this will not work either. They have got into a fight with the basic economy and cut the whole country's head off.” said Refet Gürkaynak, head of the economics department of Bilkent University in Ankara

"A look through the new measures left me scratching my head about how they would ever be enacted and executed, especially in a short time," said Jeffrey Halley, senior market analyst at Oanda Corporation.

I think that next year is going to be really ugly for the Lira and inflation.

https://ahvalnews.com/turkish-lira/turk ... ers-losses

[Lordo]

Turkey National Debt Is Low – So Why Are They In Trouble?

Read more at: https://commodity.com/data/turkey/debt-clock/

Good read RW.
I conclude the correct word for Turkey is not bankrupt. It's broke.
Bankrupt is when you don't have enough money to pay your debts.
Broke is when you don't have enough money to survive.
Which of the 2 is worse, I am not sure, I think broke is worse. Let the economists of the forum tell us

Potato or Potatoe?

And if that is the case, it remains to be seen how the government would be able to fund the potentially expensive and inflationary plan.

Turks sold about $1 billion yesterday after his announcement that they would get a deposit guarantee scheme, and exporters problems would be alleviated with futures contracts.

The government would cover losses incurred by lira deposit holders in cases where the lira’s depreciation against foreign currencies exceeds the banks’ interest rates.

Erdogan also promised exporters on Monday they would get foreign exchange forward rates from the central bank to mitigate volatility risks, and increased government contribution to private pensions from 25 percent to 30 percent.

https://www.aljazeera.com/economy/2021/ ... ation-plan

Some economist are calling this an epic interest rate hike without hiking interest rates. “If the central bank continues to give money at 14 percent, this will not work either. They have got into a fight with the basic economy and cut the whole country's head off.” said Refet Gürkaynak, head of the economics department of Bilkent University in Ankara

"A look through the new measures left me scratching my head about how they would ever be enacted and executed, especially in a short time," said Jeffrey Halley, senior market analyst at Oanda Corporation.

I think that next year is going to be really ugly for the Lira and inflation.

https://ahvalnews.com/turkish-lira/turk ... ers-losses

Oanda Corporation you say, fuckem and their messangers too.

[Lordo]

Oh wise one please explain what is going on, why has TL recovered.

I will give you a clue. Financial plans like to play the game of identifying a leader who is weak, attack the currency, he will foolishly try to propt it up, they will attack it even further and make lots off bucks. At some point they will turn the table and buy the currency when it is in its weakist and buy it buck and make more bucks.

Gavole you know nothing about bulls and bears I bet. I on the other hand got a B in my Economics O Level. Fat lot of good that did to me as I had no money to invest in anything at the time being a secondary school student and my father losing a lot of his land to you GC boys.

[Maximus]

Turkey’s central bank may have spent upward of $13.5 billion of its foreign currency reserves to help defend the lira against record losses in December and then to help engineer a rally this week, according to data provided by a top economist and the main opposition Republican People’s Party (CHP).

The central bank’s reserves, net of liabilities such as foreign currency swaps, stood at minus $50 billion, the CHP said, according to Cumhuriyet.

So the central bank is in the minus and Erdo has plans to compensate TL holders against exchange rate fluctuations versus foreign currency and subsidize importers.

OK.

https://ahvalnews.com/turkish-lira/turk ... rves-month

[Lordo]

I came accross this article. Very interesting to compare.

Back in 1994 the interest rates in Turkey were 500%.

https://www.middleeasteye.net/news/turkey-lira-crisis-older-parallels-past-currency-collapse

[Lordo]

There was a time where such program was possible. Year 1991 when Turkey had 10 million unemployed.

[Lordo]

I wonder if any of the corporations in Turkey like the Koch's and the Sabanci's of this world actually pay any tax?

Erdogan and his family and friends have also got very wealthy, I wonder if they pay any tax on their earnings.

[Kikapu]

A while back I wrote about Erdogan and the gang of being modern day “Robin Hood”, except they would steal from the poor and give it to the rich....themselves basically. Well this is how they did it a week ago to reverse the downward spiral at that time of the worthless Turkish Lira.

Turks keep holding on to dollars as mistrust in Erdogan lingers

Ankara’s currency-defense scheme has stopped the lira’s nosedive for now, but there is no tangible sign that a return to the lira has begun to reverse the alarming dollarization in the country.


Turkish economy
December 28, 2021

The jury is still out on Ankara’s scheme to encourage a return to the Turkish lira as hard-currency depositors are sticking to their assets despite a state-backed market intervention that rallied the lira last week.

The scheme, meant to reverse an alarming dollarization trend, was announced by President Recep Tayyip Erdogan on Dec. 20, shortly after the lira tumbled past 18 versus the greenback. It was an all-time low, to which the embattled currency sank from the region of 11 vs. the dollar in just a month amid growing apprehension over Erdogan’s push for interest rate cuts despite soaring inflation. Officials may claim that the scheme has sparked a return to the lira, but financial data indicate the opposite.

According to daily statistics by the Banking Regulation and Supervision Agency, foreign-currency deposits not only did not decrease after the government’s move but rose by about $250 million to reach $163.7 billion Dec. 22. Similarly, corporate foreign-currency deposits increased by $1.8 billion to $98 billion in the same period.

The scheme aims to encourage foreign-currency depositors to return to the lira and prevent the flight of the remaining lira holders, pledging that any losses they might incur from the fall of the lira would be reimbursed by the treasury or the central bank. But despite all-out promotion by state institutions, public banks and the pro-government media, hard-currency depositors have shown little interest so far, mainly because of lingering mistrust in Ankara. The confidence gap has been compounded by revelations about how the lira’s abrupt rally occurred — through back-door interventions by the central bank, which sold billions of dollars via public banks despite its already depleted foreign reserves.

The scheme requires retail depositors to tie their money up for at least three months. That has little appeal to the majority of deposit holders in Turkey on one-month terms. Moreover, depositors who choose to leave the scheme earlier risk a loss on their principal amounts if the lira slides in the meantime, in addition to losing the return from the bank’s interest rate. The lira, which had surged about 50 percent to the region of 10 versus the dollar last week, was already falling this week, touching 11.95 to the greenback on Tuesday.

https://www.al-monitor.com/originals/20 ... an-lingers

[Lordo]

This is a financial game being played by the wealthy and the cost being paid by the poor. If the wealthy lose money on in this game, it is no big deal but the poor go hungry.

What a game to play and what a game to salivate over by our resident toilet boy enjoying every minute of it.

[Kikapu]

This is a financial game being played by the wealthy and the cost being paid by the poor. If the wealthy lose money on in this game, it is no big deal but the poor go hungry.

What a game to play and what a game to salivate over by our resident toilet boy enjoying every minute of it.

Well, the biggest game player the last few months was/is Erdogan and his crooked gang who had robbed the poor in their attempt to buy foreign cash for Liras to keep pace with inflation and the devaluation of the Lira by trying to keep their head above the water so not to drown economically. So what does Erdogan and his gang of crooks do, is to talk the TL down by almost 120% against the US dollar, and when the people are rushing to buy Dollars as the TL is going down the toilet, Erdogan and his gang of crooks buy the deflated TL at a bargain either with their own money or the banks run by his friends causing the TL to appreciate by 50% immediately. A classic insider trading to make a killing, an action most people would be jailed for, but not Erdogan and his gang of crooks. In the meantime, the poor who bought Dollars for the continued devalued TLs before this insider trading by Erdogan and his gang of crooks took place last week, have become poorer.