Turkey Watch Thread

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Yuli Ban
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Turkey Watch Thread

Post by Yuli Ban »

Surprised we didn't have this one yet

Investors fear the lack of independence of Turkey's central bank, whose monetary policies are seen as being largely controlled by Erdogan.

The latest sharp downturn began last Thursday when the central bank cut rates by 100 basis points to 15%. It's cut rates by 400 basis points since September alone.

According to ratings agency Fitch, in August 57% of Turkey's central government debt was foreign currency linked or denominated, meaning paying that debt becomes more painful as the lira continues to drop in value.
And remember my friend, future events such as these will affect you in the future
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Yuli Ban
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Re: Turkey Watch Thread

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Turkey's freaking out
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And remember my friend, future events such as these will affect you in the future
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Yuli Ban
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Re: Turkey Watch Thread

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And remember my friend, future events such as these will affect you in the future
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Yuli Ban
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Re: Turkey Watch Thread

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Erdogan Unveils Extraordinary Steps to Protect Turkish Lira, Savings
President Recep Tayyip Erdogan’s government announced extraordinary measures to bolster the Turkish lira, including the introduction of a new program that will protect savings from fluctuations in the local currency.

The government will make up for losses incurred by holders of lira deposits should the lira’s declines against hard currencies exceed interest rates promised by banks, Erdogan said after chairing a cabinet meeting in Ankara.

The lira trimmed its drop -- which had extended to as much as 10.6% -- after Erdogan’s announcement and was trading down 5.9% at 17.4240 per dollar at 8:45 p.m. in Istanbul.

“From now on, none of our citizens will need to switch their deposits from the Turkish lira to foreign currencies because of their concerns that the exchange rate” fluctuations might wipe out gains from interest payments, Erdogan said.
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erowind
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Re: Turkey Watch Thread

Post by erowind »

Oh my, 14-17ish/usd in a day. Turkey seems to be entering an inflation spiral in earnest.
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Yuli Ban
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Re: Turkey Watch Thread

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And remember my friend, future events such as these will affect you in the future
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Yuli Ban
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Re: Turkey Watch Thread

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And remember my friend, future events such as these will affect you in the future
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Yuli Ban
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Re: Turkey Watch Thread

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And remember my friend, future events such as these will affect you in the future
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caltrek
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Re: Turkey Watch Thread

Post by caltrek »

erowind wrote: Mon Dec 20, 2021 9:56 pm Oh my, 14-17ish/usd in a day. Turkey seems to be entering an inflation spiral in earnest.
Apparently.

Turkey’s Inflation Rate Soars to Almost 70 Percent
May 5, 2022

https://www.aljazeera.com/news/2022/5/5 ... t-in-april

Introduction:
(Al Jazeera) Turkey’s official inflation rate has spiralled to nearly 70 percent in April, posing a huge challenge to President Recep Tayyip Erdogan, whose unconventional economic policies are often blamed for the economic turmoil.

The consumer price index rose by 69.97 percent year-on-year in April compared with 61.14 percent in March, the national statistics agency said on Thursday.

Erdogan insists that sharp cuts in interest rates are needed to bring down soaring consumer prices, flying in the face of economic orthodoxy.

The collapse of the lira has pushed up the cost of energy imports and foreign investors are now turning away from the once-promising emerging market.

Russia’s invasion of Ukraine and the coronavirus pandemic have exacerbated the energy price spikes and production bottlenecks.
caltrek's comment: Of course, voters in the U.S. will not care or appreciate what a worldwide problem this is, or how the U.S. is actually fairing well in comparison to other countries in this respect. They will simply vote for candidates that will pursue policies that will make it even more difficult on the middle class, let alone on the poor. But I digress from the theme of this thread. So, getting back to Turkey, one wonders if political instability that this may cause will benefit even more reactionary forces in Turkey as opposed to the more progressive minded.
Don't mourn, organize.

-Joe Hill
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caltrek
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Re: Turkey Watch Thread

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Russia Urges Turkey Not to Launch Offensive in Northern Syriaby
June 2, 2022

Introduction:
(Al Jazeera) Russia urged Turkey not to launch an offensive in northern Syria after President Recep Tayyip Erdogan renewed threats of a military campaign targeting Kurdish “terrorists”.

“We hope that Ankara will refrain from actions that could lead to a dangerous deterioration of the already difficult situation in Syria,” Russia’s Ministry of Foreign Affairs spokeswoman Maria Zakharova said in a statement on Thursday.

“Such a move, in the absence of the agreement of the legitimate government of the Syrian Arab Republic, would be a direct violation of Syria’s sovereignty and territorial integrity” and would “cause a further escalation of tensions in Syria”, she added.

Erdogan on Wednesday again proposed a military offensive (see https://www.aljazeera.com/news/2022/6/1 ... hern-syria ) in northern Syria.

“We are taking another step in establishing a 30km (19-mile) security zone along our southern border. We will clean up Tal Rifat and Manbij,” he said, referring to two northern Syrian cities.
Read more here: https://www.aljazeera.com/news/2022/6/ ... ern-syria

In all fairness to Russia (and it is so hard to be fair to Russia these days given the misbehavior of its government) the U.S., as represented by its current government leaders, would also like to see Turkey refrain from launching an offensive into northern Syria.
Don't mourn, organize.

-Joe Hill
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