Intersting article on TL effects in TRNC

[laptatony]

When Turkey sneezes the TRNC catches a cold...

https://www.aljazeera.com/news/2018/08/ ... 31283.html

[EnjoyingTheSun]

Paying for imports from Turkey in dollars or euros is insane.

[kibsolar1999]

A full 24 hrs not a single comment/post here... ....seems that many did not know that also imports from Turkey are payed in dollars or euros and may regret some of their posts in other threads.

This is the “price for independency", that is what happens when you ask for an “export price list” (ex VAT, Ex works, CIF, FOB or whatever).
Payment terms are usually “prepayment in full”.
Until your goods are ordered, payed, packed, shipped, delivered at customs KKTC and finally in the shops, it may take some weeks.

The KKTC customs charge all “costs” (eg VAT) in TL, but to the daily exchange BUYING rate.

No “fun” for companies who had imports coming in last week. İ guess that some accepted “fines for storage at customs”, hoping the TL to recover a bit.

So, if some shelves are empty.... your desired goods will arrive “after bayram”.

[Brazen]

Paying for imports from Turkey in dollars or euros is insane.

I think you will find that a lot of hotels in Turkey ate priced in euros. I remember on a holiday there in 1975 that all the stalls in a market priced all their goods in Deutschmarks.

[Brazen]

Should have read 1995!

[Reyntj]

Last monday i rushed out and bought some electric goods i need fridges washing machine air units etc etc i comopared beko to blombard and blombard where 1000 tl cheaper.

It ciost me 16800 tl i coukd only pay 10000 tl last week but the shopkeeper in iskele booked the items for delivery in a few weeks as required .

I went today tomoaybthe balance and the shopkeeper greeted to me and explained hoe lucky i was as all the prices have gone up across the board this morning . He showed me one if the items as an example last week 1300 tl now .....1900 tl....over a 40 % increase .

The same items woukd cost me today c 25000 tl!

Blombard are german . Clearly this is no surprise but an example of the immediate very very large increase in prices in tl terms .

[erol]

Blombard are german . Clearly this is no surprise but an example of the immediate very very large increase in prices in tl terms .

Blombard ? Do you mean Blomberg ? If so Blomberg is owned by Arçelik

https://en.wikipedia.org/wiki/Ar%C3%A7elik#Brands

[Reyntj]

Your probably right blomberg . Sounds german anyway the shopkeeper said from germany . At theend of the day if its from outer mongolia the price just went up nearly 50% in tl terms overnight

Just googled and yes your right erol made in turkey ! I wander if thievprice monitoring prople will look at this

[erol]

Your probably right blomberg . Sounds german anyway the shopkeeper said from germany . At theend of the day if its from outer mongolia the price just went up nearly 50% in tl terms overnight

Just googled and yes your right erol made in turkey ! I wander if thievprice monitoring prople will look at this

The following is all 'as it seems to me' - nothing more.

If the shop/distributor is buying these items from the manufacturer in Turkey (arcelick/blomberg) in TL and the TL price they are paying is the same this week as it was 3 weeks ago then the 40% price increase would seem to me to be 'profiteering' and the government should indeed investigate it as such and take action as necessary.

However if the shop/distributor here buys these items from the manufacturer in Turkey in Euros (or dollars or sterling) then even if the euro price they pay today is the same as they paid 3 weeks ago, then it seems to me the bulk of the TL price increase is down to the movement in TL vs Euro and not profiteering by the shop or distributor ?

[kibsolar1999]

Erol, you say that
the government should indeed investigate 'profiteering' and take action as necessary.

what (kind of) action, pls?
and what is the difinition of 'profiteering' ?
as
this house build for 50 k and sold for 150k?
and what means 'necessary'?

should they investigate "offers" (dumping) as well eg, "this bottle of white wine for 30 tl (instead of 50) when you buy for 100TL" ?

[erol]

Erol, you say that
the government should indeed investigate 'profiteering' and take action as necessary.

http://www.cyprustodayonline.com/cyprus ... aders/1767

Again want to stress this is all just how it seems to me.

If a retailer puts prices up by 40-50% when the cost to them of resupplying said item has not increased at all, then even given that their other costs have also increased, to me that would seem to be 'profiteering' - using the recent lira problems as an excuse to 'hide' what is in effect a massive jump in their profit margins on that item.

If however they put up the price of an item by 40-50% but the cost to them of resupplying that item has also jumped 30-40% because of the lira fall, then an increase of 40-50% would not seem to me excessive to me nor would I consider such 'profiteering'.

At the end of the day it is the government that has pledged to protect consumers. Not an unreasonable objective from government given the situation it seems to me ?

[Reyntj]

My assumption would be that yes they are buying in euris . Am iright inthinking that trnc buys lots of goods frm turkey in euros and dollars . If thats the case younhave to ask why ! Arentbthere any measueres tocounter that . Im sure everyone is happy to buy turkish products and support the lurkidh economy but its a bit if bitter pill when they are inflating the prices by making trnc pay for them in euros or $ .

[kibsolar1999]

Erol,
İ know this is your opinion.... but sorry, i also read this article .. and i wonder...

As far as i know the gov sets the prices for electricity, petrol, gas, milk, and bread (” standart” loaf) only. (more??)
i also did not know that there is an “anti profiteering law” existing in the TRNC. A law you need to act, eg, send teams out there to check prices (meaning: you have to send out a team of accountants) and, in case of “proved profiteering” (due to TL exchange rate) introduce fines.
At the moment, it seems, they may could ask them politely to check pricing again... or threaten them with a sh**storm on facebook.

İf such a law existed (the law is breached if.......yes, Erol what to write here? ) , they could have send out teams since ever, as imho some prices in the TRNC always have been sort of profiteering and that includes pricing in euros, dollar or GBP as well.
So, the announcement of the gov is.. useless, as also the definition “daily use products” (what is that?) is not very helpful...
Also other “gov measures”, i guess, will not last for long the moment someone files a case...

Pricing often depends on three aspects: for how much (or how many items) you buy, payment terms and in which currency you pay.
Kibris is a small country..(all in all half of Antalya), so, “the very great sales” are not to be expected. But, to pay imports in a hard currency in advance often is an advantage, you may get the pricing you need to push (or offer) your product in(to) the (Kibris) market.
This applies often for the “assembling industry” (eg, white goods) .. and as long the TL is somewhat stable or “plannable decreasing” , all is good.

But also due to transport, “in general all” is a bit more expensive as in Turkiye, especially “small goods” with small margins. But often you can see adverts like “same price as in Turkey”.. eg, white goods, because, eg, the transport is more or less the same as in Turkey.

Do you know what i believe is "real profiteering"? When the Euro – TL cross exchange rate is somewhat at 6,90 to 7 (today 7,07) and i get 6! to 6,4 TL only and have to pay 7,70.

[erol]

kibsolar1999 I share your view that government may well not be able to 'deliver' on their objective to try and stop or reduce 'profiteering' resulting from the recent sudden and large drop in the value of the lira but I welcome them at least stating they will try. As I understand it they have introduced special time limited emergency measures 'by decree' and outside of normal legislative mechanisms. Will they be able to include 'anti profiteering' in these measures ? I do not know.

As for 'profiteering' of exchange bureau businesses here, in general and pre this latest crisis it has always been my experience that the local bureaus here offer significantly more competitive rates for buying or selling TL than say my UK bank (Lloyds) has ever done, so in that sense if the bureaus are 'profiteering' then Lloyds is doing so historically even more as far as I can see. As to post this latest crisis I really do not know enough about the economics and risks involved in operating an exchange bureau here to be able to form any sort of hard opinion on 'profiteering'. Certainly on the surface your figures look 'bad' for the bureaus but it does seem to me what has happened in the last 30 days or so with the lira rate really is unprecedented and I can understand why in the short term in a period of such volatile movements the spread between buy and sell would increase significantly without that necessarily indicating profiteering.

[EnjoyingTheSun]

Just the usual lip service.
I assume the anti-profiteering law will be enforced with as much gusto as the law on having your car taxed.
Profiteering is much harder to prove than whether or not a car is taxed.