The Turkish Lira is in free fall and losing value on a daily basis. This has really kicked into gear since the beginning of September this year. I know Turkey has numerous economic issues, as well as domestic problems, that are weighing heavily on investor sentiment, but the colossal loses that are taking place are far in excess of what would normally occur.
Turkey is not the only country facing economic difficulties but they are being hit the heaviest. Do you think there is a campaign, albeit unspoken at this time, to exert pressure on President Erdogan by bringing Turkey to its knees economically. The world clearly hates him and his sultanistic tendencies, and are hell bent on bankrupting his country and hopefully turning his people against him. A war fought with money not weapons. Thoughts?
Economic war against turkey
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- Kibkommer
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Re: Economic war against turkey
Hedge-Fund warned about the Turkish economy & in particular TL savings some months ago.
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Re: Economic war against turkey
Personally I am not sure what can be considered 'normal' about the state of Turkey right now ? Renewed armed conflict with PKK, shot down a Russian fighter jet, failed coup attempt, state of emergency declared and still in force, continuing 'purges' against those perceived to be against Erdogan and AKP with 100, 000 in jail and awaiting prosecution and even larger numbers dismissed from their jobs. To me it seems against such a backdrop the scale of the impact on the value of the TL is not necessarily far in excess of what would be 'normal' ?august wrote:, but the colossal loses that are taking place are far in excess of what would normally occur.
As someone with earned income in TL this situation is far from great for me, with the value of my earned TL dropping in value on a daily basis but I am not sold on the idea of some grand conspiracy against Turkey by other sovereign states. To me it seems more than possible and likely that the impact on the TL is indeed a reflection of the 'dead hand of the market's' view of the state of Turkey politically right now.
Just my own views based on little more than feeling and instinct.
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- Kibkommer
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Re: Economic war against turkey
Turkish economy grew by over 11% in the last quarter following on from good gains in the previous two quarters. Erdo says next years growth will be over 7% which is outstanding. A strong economy means a strong currency so hopefully the TL will gain strength soon.
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- Kibkommer
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Re: Economic war against turkey
Credit ratings agency Fitch has said that they expect the Turkish economy to grow by 4.8% for each of the next 5 years which puts Turkey third out of all the emerging markets. Strong economy equals a strong currency so would expect the TL to strengthen soon.