Kibkom North Cyprus Forum

Turkish lira to the pound?

At the moment it looks as if it will do so this week! Unless a very big rabbit is pulled out of a hat!

What will be interesting is what will Turkey do when it does.

5.92 on foreign just now

We are at 5.928 at this moment so probably won't have to wait long to find out. The problem as I see it is that the government is given to knee-jerk reactions.

Turkey will do nothing if the Lira falls against the £.
They are only interested in the rate against the $.
Recently the concern in Turkey was if it fell to 4TL against the dollar - it has, to $1=4.17TL today.
Many mainland Turks have been selling Lira for some time and buying dollars.
The central bank has not increased interest rates so the currency continues to fall against the dollar.

From today's Hurriyet News:

Turkey’s lira sank to fresh record lows against the dollar and euro on April 11 as investor concerns deepened about the outlook for monetary policy and inflation — and about political tension in Russia and Syria.
The lira, one of the worst-performing emerging market currencies this year, has plumbed record lows for the last five trading days. It has been pressured by a sharp sell-off in Russia’s rouble, the currency of a major trading partner and a fellow emerging market heavyweight.
It hit an all-time low of 4.1550 against the dollar, a depreciation of 8.5 percent this year, weakening from 4.1166 a day earlier, according to Reuters data.
Against the euro, it weakened to a record low of 5.1435.
While Russian assets have been hit by U.S. sanctions on Russian businessmen, investors said many of Turkey’s problems were homegrown.
There was little impact from closely watched current account data, which showed a deficit of $4.152 billion in February, less than the $4.2 billion forecast in a Reuters poll and down from a deficit of $7.039 billion a month earlier.
However, the deficit was sharply wider than the $2.566 billion in February last year and one analyst said it affirmed Turkey’s vulnerabilities on the balance of payments front.
Turkish five-year credit default swaps rose to 215 basis points (bps) according to data from IHS Markit, the highest level since mid-November, and up 6 bps from the close on April 10.
The yield on the benchmark 10-year bond opened at 13.5 percent, compared with a last level of 13.41 percent in value-dated trade a day earlier.

I'm gutted, I changed £200 at 5.7 a couple of days ago. I'm just going to keep it in my pocket until it goes back down to 2.6!

5.89 this evening.

frontalman wrote:I'm gutted, I changed £200 at 5.7 a couple of days ago. I'm just going to keep it in my pocket until it goes back down to 2.6!

Don't hold your breath - remember to breathe!

frontalman wrote:I'm gutted, I changed £200 at 5.7 a couple of days ago. I'm just going to keep it in my pocket until it goes back down to 2.6!

George Soros eat your heart out

Another whack today apparently thanks to Donald