An American bank expects the Turkish lira to collapse against the dollar to unprecedented levels

[yota691]

 

The Turkish Central Bank intervenes to stop the collapse of the lira

 

 2021-12-13 11:33

 

Shafaq News/ The Turkish lira fell by about 7%, hitting a new record low near 15 against the US dollar on Monday, affected by concerns about a new risky economic policy pursued by President Recep Tayyip Erdogan and the prospects of another interest rate cut, which prompted the Central Bank of Turkey to intervene again.

 

The Turkish Central Bank announced its fourth intervention in the market in two weeks, selling dollars, which gave some support to the lira after it plunged to 14.99 against the dollar, to lose about half of its value since the beginning of the year.

 

At 1345 GMT, the lira reduced its losses to record 14.08, but it is still 1.3% lower than its level at the beginning of the session and down 34% since the beginning of last month.

 

Turkey's new Treasury and Finance Minister, Noureddin Nabati, said last Thursday that the budget deficit would fall to less than 3.5 percent of gross domestic product this year, and would be managed with fiscal discipline.

 

Nabati, who replaced his predecessor Lutfi Elvan, added last week that parliament's fiscal policy under his supervision would be transparent, and reiterated that the government would focus on improving the current account balance.

 

The Turkish economy is struggling after a series of steep interest rate cuts sought by President Recep Tayyip Erdogan, which sent the lira down nearly 30 percent last month to record lows and helped push inflation above 21 percent.

 

Erdogan appointed Nureddin Nabati as Treasury and Finance Minister after accepting the resignation of Lutfi Elvan, the last senior official who was seen as committed to tightening monetary policy in a government suffering from a currency collapse.

 

The appointment, which was announced by the Official Gazette, came in the wake of the lira's tumbling 27 percent last month alone, and the Turkish currency's decline to historical levels due to the trend of economic policy.

 

Elvan, a former deputy finance minister and a longtime member of the ruling Justice and Development Party (AKP), took over as finance minister just over a year ago, having replaced Berat Albayrak, Erdogan's son-in-law.

 

Elvan's departure represents the latest change in the rapid replacement of major economic positions in Turkey, which has included Erdogan's abrupt dismissal of three central bank governors in the last two to two and a half years, moves seen as having shaken the credibility of Turkey's policymaking.

 

[yota691]

The Turkish currency recorded a new decline, exceeding 15 lira to the dollar, before the interest decision

2021.12.16 - 13:42

 

Baghdad - people  

The Turkish lira plunged to an all-time low above 15 to the dollar on Thursday, ahead of another expected interest rate cut from the central bank, in line with President Recep Tayyip Erdogan's risky new economic programme.  

  

 

  

The price of the lira fell 2.9 percent to 15.25 pounds to the dollar, and it was trading at the level of 15.2 pounds to the dollar at 0701 GMT.  

The US dollar has more than doubled its value against the lira this year, severely shaking the emerging Turkish market.  

A Reuters poll showed that despite inflation rising to more than 21 percent, the central bank is still expected to cut the key interest rate by 100 basis points to 14 percent at its policy-setting meeting later in the day.  

The central bank has cut its key interest rate by 400 basis points to 15 percent since September in line with Erdogan's plan to prioritize exports and lending, despite criticism from economists and lawmakers opposed to the policy as reckless.  

The central bank, which targets an inflation rate of five percent, said that the inflation pressure is temporary and necessary to increase economic growth and achieve a balance in the current account balance.  

The lira was also affected by the Federal Reserve's decision on Wednesday to end its stimulus bond-buying program in March and its expectation to raise US interest rates three times next year.  

  

[yota691]

 

On the impact of the lira's unprecedented decline... the Turkish Central Bank announces a new interest rate cut

 

 2021-12-16 06:11

 

Shafak News/ The Central Bank of Turkey decided, on Thursday, to reduce the interest rate by 100 basis points on "repo" operations for a week, to 14 percent, in a reduction of 1%.

This decision would lead to a further decline in the price of the Turkish lira, which has been witnessing a sharp collapse for weeks, to break the barrier of 15 lira against the dollar.

Since January 1, when its value was 7.43 liras per dollar, the Turkish currency has lost more than 49 percent of its value against the greenback, including 30 percent in November alone.

At a time when the inflation rate in November exceeded 21 percent on an annual basis, Turkish President Recep Tayyip Erdogan refused to raise interest rates and adjust his fiscal policy.

[yota691]

Reuters photo

The Turkish currency breaks the 16 lira / dollar barrier, recording its lowest level

 2021-12-17 02:58

 

Shafaq News/ On Friday, the Turkish lira hit a record low against the dollar, a day after the Central Bank announced a new interest rate cut within the framework of President Recep Tayyip Erdogan's economic program.

The lira crossed 16 per dollar, compared to its close of 15,675 on Thursday.

The central bank cut the interest rate by 100 basis points, in line with expectations, bringing the rate of cut that began in September to 500 points, which reduces the attractiveness of the currency to investors and depositors.

The bank hinted that it would halt the interest rate cut to monitor its repercussions in the next three months.

The central bank is facing pressure from Erdogan to cut interest rates in order to boost economic growth.

The bank has intervened four times in the currency market in the past two weeks and sold dollars to slow the decline of the lira and erode its already depleted foreign reserves.

[yota691]

 

Gold hits record high against Turkish lira

 

 2021-12-20 06:01

 

Shafaq News/ The gold price in Turkey broke a new record, so gold prices came as follows:

Gold Gram: 1,023 Turkish Liras

Gold carat 1,710 Turkish lira

Lira ounces 6,846 Turkish liras

The price of gold hit a new record today in Turkey, despite the decline in the global price of gold above $1,800 an ounce. The rise in the price of gold comes in light of the collapse of the exchange rate of the Turkish lira.

The price of gold rose from 770 Turkish liras at the beginning of December to 1,023 Turkish liras today. The price of a gram of gold against the Turkish lira has increased by more than 120% this year.

The Turkish Central Bank cut the interest rate by 500 basis points, from 19% to 14%. The price of gold rose nearly 70%. The Turkish lira continues to decline with the insistence of the Turkish president to cut interest rates.

Reuters

[yota691]

 

Turkish lira rises after Erdogan's anti-dollarization plan

 

 2021-12-21 01:49

 

Shafaq News/ The Turkish lira rose by seven percent on Tuesday after a historic recovery of 25 percent on Monday from its record lows, after President Recep Tayyip Erdogan revealed a plan that he said would protect deposits in the local currency from market volatility.

The currency fell and then rose in turbulent trading to record 12.21 pounds to the dollar at 0559 GMT, after closing at 13.15 pounds to the dollar.

Erdogan said in a speech late on Monday that the set of steps included in the plan would ease the burden of the currency collapse in the past weeks and encourage Turks to save in local currency instead of dollars.

He did not clarify how the government would finance this initiative, which may be costly and increase inflation.

Before the plan was announced, the lira was down 10 percent at 18.4 to the dollar. After that, it rose to 12 pounds, the highest rise recorded in one day, and closed at a rise of 25 percent.

[horsesoldier]

“ Yip “ better hopes his plan will work, otherwise the folks is gonna be mighty upset....torches & various hand held farm implements upset. 
 

Was reading articles on this last evening. At the moment “ Yip “ better have his Chopper gassed up & ready to go if his plan goes into the dumpster.

 

Dont forget those suitcases full of Yankee Greenbacks !

Edited December 21, 2021 by horsesoldier

[yota691]

How Bad Can Inflation Be? Turkey Offers a Warning. | WSJ
1,526,415 views Dec 15, 2021

 

Wall Street Journal

As the Federal Reserve and other central banks around the world deal with rising inflation amid the economic recovery from the pandemic, Turkey – where the rate is currently over 20% – offers a warning. Soaring inflation has led to economic turmoil after years of broad growth. Photo: Sedat Suna/Shutterstock

 

 

 

Sleep Walker
6 hours ago
I live in Turkey and believe me there is no lesson to be learnt from our strategy. The case is much more complicated than it seems to be summarized in a 3 or 5 minutes video.

 

Brem
1 hour ago
If you don't learn something from every experience, you're the problem.

 

Sleep Walker
1 hour ago
 @Brem  if you see a failure as an accomplishment you get the wrong lesson. its worse than getting nothing. The video is too short to explain things.

Karthik Krishnan
1 hour ago
 @Sleep Walker  I mean it touched on basic monetary policy, the President's refusal to adhere to and acknowledge such monetary policy due to scriptures against Usury within the Islamic traditions, and its impact on prices and the value of the Lira. The only thing I haven't seen in this report is the fact that Erdogan has gone through multiple central bank governors in order to install people who are compliant to his demands. Perhaps he still has a fear of another secular army uprising, idk I'm not turkish, but economically, this path seems pretty unsustainable.

 

Sleep Walker
50 minutes ago
 @Karthik Krishnan  He has not Islamic concern for sure. All politicians use Islam to deceive the people. We have seen so many actions of him against Islam that no one can refuse.

 

Karthik Krishnan
37 minutes ago
 @Sleep Walker  in what way? From what I understand of Turkish history Erdoğan retains support from the people who were essentially excluded from and even coerced into the national secular project begun by Ataturk,  mainly the conservative and ultra religious Muslims. It seems like this segment of the population is unhappy but is unwilling to trade out “their man” as it were for any opposition candidate.

 

Sleep Walker
22 minutes ago
 @Karthik Krishnan  Istanbul Contract is a good example to my words above. Erdogan is not a good president for either future of the country or those who are Muslims. On the other hand "all candidates are worse than each other" with our saying.

 

Jonathan Wulf
18 minutes ago
 @Sleep Walker  There is always more to any situation. If this were a 2 hour documentary, it still would miss most things. Important is, to get the basics right. Which this video does. I studied economics, and especially central bank policy and i can guarantee this: with a politically independent central bank within a transparent and stable democracy, plus a free press to hold those in power to account: this would not have happened. This is what happens when autocrats take power, who want to control every part of life. 

In the last two decades Turkey slow walked from a position of a modern country and stable democracy, an upcoming political and economic powerhouse, to a country where democracy and the free press are things of the past, and only remnants remain, and the sad thing is Turkish voters wanted this, or they would have never put RTE in power in the first place. That's like cows voting for the slaughter house, and not even realizing it. Now it may be too late. Politicians and courts are corrupt and have to be politically aligned with the countries leadership, elections are manipulated Russia style, and in the same vein journalists who report the truth are hunted like criminals.

The Turkish people are content being placated by RTEs supposed religious piety and his stances in foreign policy and on the Kurdish issue. Supposed attempted military coups at convenient times play up the siege mentality of his supporters. He and his party used these issues to take full control, undermine democracy and enrich themselves, at the expense of honest and hard working Turks. A worrying trend, especially if you look at countries like Hungary and Poland who apparently want to go down the same destructive path.

 

Karthik Krishnan
12 minutes ago
You mean his withdrawal from this Istanbul convention? I heard they complained about normalising homosexuality which I can say with decent confidence that erdogans base prbly hates those kinds of people so it’s just a way to gain their support for a longer period of time, to make them feel like he is advancing their issues.

Sleep Walker
10 minutes ago (edited)
 @Jonathan Wulf  Yes you are right. The thing about the video is that people would think that we are playing the smart dealing with inflation after watching this. Its not like that.

Sleep Walker
4 minutes ago
 @Karthik Krishnan  It is a part of a grand project being played on people to destroy the family structure and thus the generations. It is not an exclusive project to our people as you know I assume..

[yota691]

POSTED ON 2021-12-21 BY SOTALIRAQ
Because of the lira crisis, cryptocurrency trading in Turkey exceeds one million

Bitcoin is one of the most traded currencies in Turkey
Reuters obtained data that cryptocurrency transactions in Turkey reached more than one million per day as the country's currency fell to a record low.

The 1 million threshold was crossed for the first time earlier this year, when the sudden replacement of the country's central bank chief in March triggered the lira's first major fall in 2021.

But the number of trades fell back below 500,000, before the recent fluctuation wave in the lira triggered interest in it again.

The lira has fallen by about 40 percent since September, prompting Turks to search for places to store their savings to avoid the effects of high inflation.

Converting the lira to US dollars or gold is common for Turks, who have seen the currency lose 90 percent of its value since 2008.

But with Ankara seeking to make these practices more difficult, and cryptocurrency prices rising sharply this year, cryptocurrency trading has gained in popularity, especially Bitcoin and Tether.

Bitcoin, which hit a record price of $69,000 in November, is widely seen as anti-inflationary and a store of value despite its volatility.

However, the increase in cryptocurrency trading in Turkey has caught the attention of the authorities. Last September, Turkey's deputy finance minister said that regulations for the emerging asset class would be introduced, and Turkey's central bank banned cryptocurrencies for traditional purchases in April, citing "irreparable" damage.

[yota691]

 

The Turkish lira continues its strong rise amid a decline in foreign reserves

 

 2021-12-23 15:43

 

Shafaq News/ The Turkish lira continued its rise and increased by about 10 percent, today, Thursday, to add this to the significant gains it recorded this week.

According to "Reuters", the Turkish lira recorded 10.81 against the dollar, up from the closing level yesterday, Wednesday at 12.05, to stabilize after record fluctuations this week.

The lira hit an all-time low of 18.4 against the dollar last Monday, when it lost about 60 percent of its value since the beginning of the year.

"Reuters" quoted 4 informed sources as saying that Turkish state banks sold the dollar excessively this week to support the lira, as the sale coincided with a decrease in foreign reserves in the central bank, according to official data.

One of the dealers revealed to "Reuters" that reserves fell by 6 billion dollars on Monday and Tuesday only.

Another source, a senior banking consultant, stated that government banks' interventions on Monday and Tuesday totaled $3 billion.

Two other sources, including a senior Turkish official, said the interventions were intense and extended toward the end of the week.

This comes after Turkish President Recep Tayyip Erdogan announced that the government and the central bank would provide guarantees for some local currency deposits in exchange for foreign exchange losses, while questions arose about the central bank's reserves.

Despite the lira’s recovery, the risk measures remained close to its highest levels ever, with questions continuing about the state’s plan to encourage savings in the local currency instead of the dollar, which could exacerbate inflation, increase public debt and erode foreign reserves if the lira declines again.

[yota691]

After the "lira recovered", Erdogan announces the elimination of the "exchange bubble"

l 14 hours ago

Agencies - Abu Dhabi

•  

 

Turkish President Recep Tayyip Erdogan

Turkish President Recep Tayyip Erdogan said on Friday that the government had eliminated what he described as an "exchange rate bubble" for the lira, by taking steps to protect Turkish currency deposits against fluctuations this week.

"We saw the exchange rate bubble vanish in one day with our package of measures, " Erdogan said , adding that the government had gone ahead with its economic plan to cut interest rates despite domestic opposition.

 

/images/v1/2021/12/22/1488408/900/506/1-1488408.jpg

Turkey.. the lira regains some of its recovery after the recent decisions

 

Ahead of a meeting with economists and academics, Erdogan also mentioned that the Turkish economy will enter a very different environment this summer thanks to a "new economic model".

The Turkish lira has fallen, on Monday, to its lowest level ever at 18.4 against the dollar after the decline has continued for months, because of the non - traditional cuts in interest rates and fears of a spiral of inflation.

Subsequently, Erdogan announced a plan by which the central bank and the treasury would compensate for losses on deposits converted into Turkish lira against foreign currencies, which led to the biggest rise ever in a day.

On Friday, the Turkish president said he expects companies and sellers to cut prices after the lira rebounds, including for cars and homes, adding that the government will track down those who do not.

Urgent Actions

Turkish President Recep Tayyip Erdogan announced on Thursday that the minimum wage in Turkey will be raised by 50 percent to 4,250 lira ($275.44) per month next year as part of measures aimed at alleviating the impact of the currency collapse and high inflation.

The minimum wage for 2021 was about 2825 liras per month, and its value fell against the dollar to 185 dollars, compared to up to 380 dollars at the beginning of the year due to the currency crisis, the second of its kind in Turkey within 4 years.

 

Inflation jumped above 21 percent last month and is expected to reach 30 percent next year, in large part due to a weaker currency, which boosts import prices.

[yota691]

Is Turkey entering a currency house of cards? - analysis

Turkey’s leader Recep Tayyip Erdogan referenced “Islam” as an answer to the currency troubles earlier this week. He wanted to keep interest rates low in the name of religion.

By SETH J. FRANTZMAN

 

Published: DECEMBER 22, 2021 17:54

 

Updated: DECEMBER 22, 2021 17:58

A US one dollar banknote is seen next to Turkish lira banknotes in this illustration taken in Istanbul, Turkey November 23, 2021.

(photo credit: REUTERS/MURAD SEZER/ILLUSTRATION/FILE PHOTO)

 

Turkey’s currency, the lira, has been on a roller coaster over the last month. It began December at roughly 13.30 to the dollar and is now at 12.25. That sounds good. The currency is stronger. Except the real picture is that a year ago it was around 7 to the dollar and this month it reached a peak of 17 to the dollar, meaning it is fluctuating wildly and it has lost a lot of value.

 

This is bad news for the middle class in Turkey. The current ruling party, the AKP, came to power almost two decades ago partly on an economic platform. Although the party is a far-right Islamic party that is increasingly populist and authoritarian, its economic credentials appealed to many average people.

 

Today that reputation is in tatters. However, the party has drawn on various methods associated with 1920s and 1930s era fascism to stay in power, including viewing the economic battle as a battle against “foreign” enemies. Turkey’s leader Recep Tayyip Erdogan referenced “Islam” as an answer to the currency troubles earlier this week. He wanted to keep interest rates low in the name of religion.

 

 

 

 

Religion and economics don’t usually mix well. But this time Turkey appears to have succeeded, at least temporarily. The problem with the recent swings and volatility is that there is a lack of clarity over what Turkey is doing. Has it merely bought the country time, or is this a new feature of the economy?

 

Reports from Turkey, which are all in pro-government media, say that “during President Recep Tayyip Erdogan’s speech outlining the country’s new economic measures, $1 billion was changed into Turkish lira, chairperson of the board of directors of the Banks Association of Turkey and general manager of Turkish state lender Ziraat Bank, Alpaslan Çakar said in a statement late Monday,” Daily Sabah reported.

Turkish President Tayyip Erdogan speaks during a news conference in Istanbul, Turkey October 16, 2021 (credit: REUTERS/MURAD SEZER)

 

A new “convertible deposit system” has been created. “Earlier on the same day, Erdogan said that Turkey will no longer be dependent on imports, and pledged that no Turkish citizen will have to convert their savings from the Turkish lira to a foreign currency,” Daily Sabah said.

 

“Exporting companies that find it difficult to present prices due to fluctuations in foreign exchange rates, will be given an exchange rate future through the Central Bank,” Erdogan said.

 

Middle East Eye tried to explain the new Turkish economic tool, which it dubbed the “Turkish dollar,” in accounts. It “offers a solution to this problem: if investors convert their foreign currencies into lira and deposit them in a savings account with a certain term of maturity, Turkey’s treasury guarantees that it will get the same return as forex markets. And if the forex markets drop below the official interest rates, the investor will still get an official interest rate return.”

 

The goal of this tool is to bring money back into the lira. The concept of free markets, stock markets or currency exchange is that despite fluctuation, the current price is based on arbitrage, such that people will trade until there is stability. This means that risk is factored into the decisions. That is because those doing the big buying and selling are not random citizens but major banks and corporations and countries. Clearly, those trading the lira believe this new financial instrument shows Turkey is committed to a certain price of the lira against the dollar.

 

 

 

The question is whether Turkey’s government, central bank and authorities truly are ready to back this in the long term.

 

There are concerns about inflation and how Turkey will deal with imports and other issues. A lot is riding on this. Turkey is a major and growing arms exporter, gambling on things like its drone sales.

 

It wants to position itself as a regional power, with a role in Libya, Iraq, Syria and other countries. It also wants to be a leader of the Islamic world, having close relations with Pakistan, Iran, Malaysia and other states.

 

In the past some of these countries even discussed a kind of “Islamic” currency or banking system to avoid a US-led financial world order. This would cater to countries like Iran under sanctions. Turkish banks have been accused of helping Iran avoid sanctions in the past.

 

If Turkey becomes a financial house of cards, slowly selling itself down the river by trying to guarantee local deposits in lira, it could set up a long-term crisis and other problems for the country.

 

It could risk foreign investment, from Qatar and its new ties to the UAE and other states. It could also threaten the endless rule of the AKP. The AKP knows this and has tried to shut down most critical media, and jail opposition politicians. Now this war on the weakness of the lira represents a new phase for Ankara and its crisis-driven agenda.

[screwball]

On 12/25/2021 at 3:51 PM, yota691 said:

the Turkish economy will enter a very different environment this summer thanks to a "new economic model".

hmmmm...GCR planned for Feb/march??? are they jumping the gun getting ready?

[horsesoldier]

“...crisis driven agenda “ & let’s put your religion in there with it’s stunning financial concepts as well - brought to you by that wonderful psychotic “ Yip “ Erdogan

So many countries around the world are in the hands of Con Artists, Power Mad Psychotics, Puppets & Muppets ( not to mention the UN, IMF, WB & the 10 most powerful families ).
 

The world is in a world of Crap.....these mutant screw heads won’t rest until the entire population of the planet is reduced to serfdom. 

[md11fr8dawg]

That's the goal soldier, that's the goal!!

[haymon]

On 10/21/2021 at 11:56 PM, horsesoldier said:

What happens when a Dictator who knows nothing about pretty much everything takes that country right into the crapper, blaming everyone & everything all the way down. 
More popcorn, more entertainment. The world has an over abundance of stupidly wicked people.

Sounds like Biden. 

[yota691]

DECEMBER 21, 2021

The recovery of the lira and the sale of the dollar... Learn the details of Erdogan's new economic plan

The Turkish lira is rebounding strongly and rebounding against the dollar after Erdogan announced a new financial tool within the new measures taken by the government after the rise in prices and exchange rates, which confirms the opposition to high interest rates.

The lira rebounded against the dollar and other foreign currencies. (Reuters)

 

 

After the statements of Turkish President Recep Tayyip Erdogan on Monday, the Turkish lira rose strongly and quickly to reach 11.11 lira against the dollar at the opening of trading on Tuesday morning, following statements made by Erdogan on Monday about a new financial instrument.

The Turkish lira began to recover immediately after President Erdogan's speech, in which he announced his government's decision to launch a new financial instrument that would allow achieving the same level of potential profits for savings in foreign currencies by keeping assets in lira. "Deposits denominated in lira will be protected from fluctuations in exchange rates," Erdogan added.

As soon as Erdogan finished his speech, which reassured the hearts of citizens and investors alike, the Turks began selling their savings of dollars in order to buy the lira, which not only rose against the dollar, but also against all foreign currencies besides gold. In a related context, the head of the Turkish Banks Association, Alp Arslan Çakir, announced that about one billion dollars had been transferred to the Turkish lira after President Erdogan's speech.

return "crazy"

Within a few hours after Erdogan's speech in which he announced the new financial tool that his government will pursue in the coming days, the lira recorded a significant increase in its exchange rate against the US dollar and the rest of the major currencies, and it rose by 33 percent at the close, which is the largest and fastest rate of appreciation for a global currency in history.

Prior to the Turkish President's statements, the exchange rate of the Turkish lira against the dollar reached 18.36, and after the speech it fell to 12.27, at 23:00 local time (+3 GMT).

Timothy Ash, senior emerging markets analyst at London-based BlueBay Asset Management, described what happened as a "crazy comeback". “A totally crazy forex day today. I don't think I have ever seen such volatility in the forex market in my 30+ year career,” Ash said. He wondered if there was time for the Turkish lira to reach its fair value, which Robin Brooks valued at 9.5 to the dollar?

Analysts explained that following Erdogan's speech, banks emptied large amounts of foreign exchange reserves, which led to a sharp decline in exchange rates, adding that new financial products and incentives - details of which are expected to be announced today - will support the exchange rate balance in favor of the lira.

The new financial instrument

The Turkish economy has always been distinguished by its possession of many dynamics that operate according to the rules of a free market economy, and which can deal with economic surprises effectively, the latest of which was the new financial instrument that was announced on Monday evening.

The new financial instrument aims to stop fluctuations in the exchange rate and ensure relative stability by encouraging investors to move towards assets based on the Turkish lira. foreign.

Through the new mechanism, a new financial alternative will be offered to citizens who want to allay their fears caused by high exchange rates when assessing their savings. In addition to the government's pledge to pay the exchange rate difference from treasury funds, deposits in Turkish lira will also be tax-exempt, which would allay investors' fears of higher exchange rates, thus curbing the operations of foreign currency poets.

new economic model

For some time now, the Turkish government has been arguing that the rise in exchange rates ignored Turkey's strong economic fundamentals, while blaming the price hike on global economic factors left by the pandemic, as well as monopolists. According to Erdogan, the benefits of Turkey's new approach will appear in the next three to six months.

It is true that this rise came as a result of the announcement of the new tool related to bank deposits, but it undoubtedly also came due to the start of activating the new economic model adopted by the Turkish government some time ago, which is based mainly on reducing the interest rate in order to reduce inflation rates, encourage investment and increase exports, and thus Increasing job opportunities and raising growth rates.

Within the framework of the new economic plans that the Turkish government has set in mind to limit the rise in prices and exchange rates, President Erdogan announced a few days ago government support packages that will increase the country’s ability to overcome the difficulties that the Turkish economy has recently experienced, most notably the increase in the minimum wage. By more than 50%, the minimum wage in Turkey has reached 4,250 Turkish liras.

[yota691]

DECEMBER 22 2021

“A huge return and exceptional measures” .. How did the international press explain the recovery of the lira?

The international press devote a large space to the appreciation of the Turkish lira, following the new financial measures and tools announced by President Erdogan.

The value of the Turkish lira immediately experienced a massive boom following President Erdogan's statements about exceptional measures (AFP)

 

In the wake of statements made by Turkish President Recep Tayyip Erdogan on Monday about a new economic plan and financial policy, the value of the Turkish lira immediately witnessed a huge jump, as it reached 11.11 liras against the dollar at the opening of trading the next morning (Tuesday), recording the highest rise In one day, more than 33 percent.

And before the statements, the exchange rate of the Turkish lira against the dollar reached 18.37, and immediately after the speech it fell to 12.2756.

The international press devoted a lot of space to the appreciation of the Turkish lira, following the new financial measures and tools announced by President Erdogan.

Erdogan's anti-dollarization plan

Reuters described the rise in the value of the Turkish lira, following Erdogan's statements about the Turkish government's new economic plan, as a "historic recovery."

She explained that the new plan comes within the framework of Erdogan's efforts to "anti-dollarization" and protect deposits in the local currency from market fluctuations, amid the Turkish President's efforts to protect the Turkish lira and combat speculation on it.

The agency spoke to Turkish presidential adviser Cemil Artem, and quoted him as saying that "the new measures eliminated the need for individual investors to demand dollars," and that this constituted a "very important paradigm shift" for the Turkish economy.

Huge comeback

The British “Financial Times” newspaper reported that the new Turkish government’s decisions regarding the value of its national currency resulted in a huge return to the lira, after a period of “the reluctance of savers to save and invest in the Turkish lira, and the choice of the dollar and gold instead of it, which in turn increased pressure on the currency.” local".

The newspaper provided details of the Turkish Ministry of Treasury and Finance’s plan to encourage Turkish depositors, which is based on the “Turkish lira deposit protected from exchange rate fluctuations” mechanism, which guarantees the lira depositor not to fall victim to fluctuations in exchange rates, and to obtain the declared interest, in addition to the difference in the dollar price. between the time of deposit and withdrawal.

It quoted President Erdogan's statement that: "From now on, there will be no need for our citizens to transfer their savings from lira to foreign currencies, for fear of higher exchange rates."

The Financial Times noted that despite the depreciation of the Turkish lira over the past weeks, Ankara's public finances "remain strong compared to many other emerging markets."

extraordinary measures

The American newspaper "Washington Post" opened its news about the rise in the price of the Turkish lira, saying: "The local currency in Turkey has made significant gains (...) after President Erdogan announced exceptional measures."

The newspaper reported that the new financial plan “aims to protect deposits in pounds from the fluctuations that have occurred in recent weeks,” and that the government will cover the losses of pound deposit holders in cases where the depreciation of the pound exceeds and bank interest rates against foreign currencies.

She pointed out that the Turkish government was able to increase confidence among a large sector of savers, and quoted Albaslan Çakir, head of the Turkish Banks Association, as saying that "a billion dollars have already been transferred to the Turkish lira immediately after Erdogan announced the new exceptional measures."

[yota691]

Turkish lira continues to offset big gains

•  Time: 12/29/2021 10:17:03
•  
•  Reading: 871 times

  

{Economic: Al Furat News} The Turkish lira fell 1.7 percent, today, Wednesday, to continue to dissipate the great gains made the previous week, with investors continuing concerns about the prospects for the country's monetary policy.

The Turkish currency fell to 12.02 lira to the dollar, by 06:15 GMT, from 11.8 lira to the dollar at the close on Tuesday.

Although it rose more than 50% last week after state-backed interventions in the market, the lira lost 38% of its value this year.

[yota691]

 

 

The Turkish lira recorded a new decline in Thursday's trading

2021.12.30 - 10:31

 

Baghdad - people  

The Turkish lira fell on Thursday, erasing the big gains it made in the previous week, as investors remained concerned about the country's monetary policy outlook.  

  

The Turkish currency fell to 13.34 lira to the dollar, by 06:17 GMT, from 12.61 lira to the dollar recorded at the close on Wednesday.  

The following is the trend of the Turkish currency trading during today's trading:  

[yota691]

 

For the fifth day in a row, the Turkish lira declined

 

 2021-12-31 05:38

 

The Turkish lira fell for a fifth day in a row on Friday, further eroding the big gains it made a week ago as investors remained concerned about the country's unconventional monetary policy and rising inflation.

The lira settled at 13.3 against the dollar in thin trading at 0806 GMT, 0.6% weaker from Thursday's close and down 20% from the end of last week.

Turks' profits in recent months have been eroded by the lira's decline, although it rebounded from 18.4 to 10.25 last week after the introduction of a government scheme to protect domestic deposits from consumption losses against hard currencies.

The currency crisis was caused by the central bank's steep interest rate cuts, which have reached 500 basis points since September, carried out under pressure from President Recep Tayyip Erdogan as part of an effort to boost credit and exports.

Economists said the easing was reckless, given that inflation has risen above 21% and is expected to exceed 30% this month and in the coming months due to the depreciation of the lira.

[yota691]

 

A new setback .. the Turkish lira plunges 5%

 

 2022-01-03 03:09

 

Shafaq News/ The Turkish lira fell 5% today, Monday, after witnessing its worst performance in 2021 since President Recep Tayyip Erdogan took power nearly 20 years ago.

 

This comes in light of the continuing fears of high inflation and unconventional monetary policy.

 

The lira fell to 13.92 pounds to the dollar, after it closed on Friday at 13.1875 pounds to the dollar.

 

Market attention was focused on December inflation data due later today, after data at the weekend showed retail prices in Istanbul rose 9.65% month-on-month in December to reach the annual rate of 34.18%.

 

Reuters had reported that inflation in Istanbul - Turkey's largest city - recorded the highest rate in nearly 10 years last December.

 

This comes as the government of President Recep Tayyip Erdogan raised the prices of electricity and energy in the country at the beginning of the new year, amid aspirations to raise the level of production of natural gas and wind energy in the country.

 

The prices of fuel, car insurance and tolls for some bridges also increased; This adds more pressure to an economy that is facing rising inflation and a currency crisis caused by repeated interest rate cuts.

 

And the Energy Market Regulatory Authority stated that electricity prices were raised by up to 125 percent, referring to global energy price inflation, for high-demand commercial consumers, and by about 50 percent for homes with less demand in 2022.

 

The state energy company Botaş reported that natural gas prices rose 25% for domestic use and 50% for industrial use in January.

 

The Istanbul Chamber of Commerce said that retail prices in Istanbul jumped 9.65% on a monthly basis last December, registering an annual increase of 34.18%.

 

The prices of household appliances in the city, which is home to about one-fifth of the country's population, increased by more than 20%, while food prices increased by nearly 15%.

 

The Chamber of Commerce added that the city's wholesale prices increased by 11.96% last December on a monthly basis and 47.1% on an annual basis.

 

On Friday, Erdogan spoke about the success of the first flow test in the Sakarya natural gas field discovered in the Black Sea, and setting a record in wind energy production.

[yota691]

Erdogan confirms that his government has removed the exchange rate bubble and will remove the inflation bubble

Tuesday 04 January 2022 17:45 | economic Number of readings: 19

Istanbul ( NINA ) - Turkish President Recep Tayyip Erdogan affirmed that his government has eliminated the foreign exchange rate bubble through the package of economic measures it has recently taken, and that it is also determined to remove the inflation bubble.

Erdogan said in a speech today at the heads of the branches of his party "Justice and Development" meeting at its headquarters in the capital Ankara: Turkey has exceeded the most difficult stage , and it 's time to reap the fruits of our efforts and achieve our goals. "

He added:" determined that the Anturk Moat Nina under pressure from the volatility of the exchange rate and rising obscene prices. "

stressed Erdogan that his government is taking the necessary steps to make Turkey among the world 's largest 10 economies.

He explained that the march of Turkey towards its goals accelerated with pandemic corona and the economic crisis that followed.

And he considered that his country's achievement of exports worth more than 225 billion dollars during 2021 is evidence of its progress on the right track./End

[jg1]

9 minutes ago, yota691 said:

Erdogan confirms that his government has removed the exchange rate bubble and will remove the inflation bubble

Tuesday 04 January 2022 17:45 | economic Number of readings: 19

Istanbul ( NINA ) - Turkish President Recep Tayyip Erdogan affirmed that his government has eliminated the foreign exchange rate bubble through the package of economic measures it has recently taken, and that it is also determined to remove the inflation bubble.

Erdogan said in a speech today at the heads of the branches of his party "Justice and Development" meeting at its headquarters in the capital Ankara: Turkey has exceeded the most difficult stage , and it 's time to reap the fruits of our efforts and achieve our goals. "

He added:" determined that the Anturk Moat Nina under pressure from the volatility of the exchange rate and rising obscene prices. "

stressed Erdogan that his government is taking the necessary steps to make Turkey among the world 's largest 10 economies.

He explained that the march of Turkey towards its goals accelerated with pandemic corona and the economic crisis that followed.

And he considered that his country's achievement of exports worth more than 225 billion dollars during 2021 is evidence of its progress on the right track./End

Im thinking, more lies. Juest because he says the exchange rate bubble has been popped, does not make it true. Oh, look more bubbles.

[JonnyV]

2 hours ago, jg1 said:

Im thinking, more lies. Juest because he says the exchange rate bubble has been popped, does not make it true. Oh, look more bubbles.

 

This is Turkey.  Not Iraq.