Kibkom North Cyprus Forum

The bank raised its overnight lending rate to 12 percent from 7.75 percent

http://www.todayszaman.com/news-337889- ... -fall.html

Feeling slightly smug this morning -I correctly predicted this rise,and the timing of it in a post on this thread last September-

http://www.kibkomnorthcyprusforum.com/v ... =27&t=9883.

very very happy with this latest move which will reward savers .

Not sure I would be feeling so smug, as according to "A Reuters poll of 31 economists on Monday found a consensus pointing to a 2.25 point rise in the lending rate. Only one forecast a move this dramatic" per the original link on this thread, which is the exact same cautious figure that you too mentioned last September.

However, for every £100k that you say changed to TL at a pretty average rate previously of 2.8 to the £, would only be worth £73k ish if you changed it back to sterling again at say 3.8TL to the £. It has rallied a bit now towards 3.7, but a few days ago I believe it hit over 3.9!

All I can say is that I am now glad my UK house sale fell though last summer, because at London Prices I think I would be suicidal by now had I changed the Sterling to Lira for the higher interest. I certainly would not be feeling smug! My heart goes out to so many who have their money in TL right now having been attracted by the higher interest rates, but no amount of high interest rate is going to make up those kind of losses!

At the moment it's only had a slight impact on the value of the lire and a 5% increase may not be enough to satisfy the money men!

Keep a cool head!

Stormy waters ahead!

not quite sure what certain posters are on about saying people losing money , your only losing money if you want to move back to sterling , on paper I am nearly 500k down on what I invested in liro if I wanted to switch back to sterling as I am not what does it matter , it only effects those who want to change back to sterling , and if like me you have a modicum of sense you will balance the books by having money in sterling to start with .

well done to turkey for doing what was needed .

3.677 right now !

Chelwood is absolutely right - nobody loses until they chicken out or are forced by circumstances to change out of lira. Personally I have no need to change back to sterling or any other currency. I have in the bank exactly the same lira savings as I had 6 months ago except that I now have the prospect of much higher interest on those savings. I don't believe for a moment that Turkey will allow the lira to stay at these levels for the longer term, the only reason they have waited so long to put up interest rates is the elections planned for March. Turkey is a net importer and the current levels do considerable harm to their economy.

On the other hand I derive considerable short term benefit from these levels because my pensions, paid in sterling, produce much higher lira returns each month. The surplus is happily added to my lira savings in the knowledge that they will one day be worth a lot more sterling than now - should I ever have need to change back..

It doesn't make too much sense to me for interest rates ( savings) to be raised more than a point or two?????

the dow jones is also entering a pullback phase. this will put more pressure on emerging markets like turkey so get ready for more sterling appreciation against the lira

The Turkish government can not hold back the tide - just waste money trying to