Economic doom spiral

[frugal90]

With the rise in minimum wage pushing inflation the trnc is stuck in an economic doom spiral. You can't keep raising prices by 20% every few months. We are doomed! Solutions??

Who makes these decisions, are they completely economically illiterate?

[Reyntj]

It was ok when the tl depreciated by the same amount..

This year wages have risen 45%
$ tl the main import currency has only depreciated by 13%....

A net 32% increase in foreign currency terms

Its self inflicted inflation and an abject failure of the goverment to control prices especially fruit & veg imported from turkey where a few are making huge sums of money.

Surely erdogan has signed off these rises & i have been told he is behind the new property rules & taxes..he must have had input is my guess.

Perhaps Games are afoot that are yet to play out. Or its just wreckless goverment and economic doom awaits. Cant help feeling the fancy car drivers will all be alright.

[Keithcaley]

Reyntj, given that the approach to financial controls by Turkiye is viewed as contrary to conventional thinking, and is considered to have resulted in the devaluation of the TL, kickstarting the inflationary spiral that we are now experiencing - I would not have a lot of faith in the success of any 'Masterplan' emanating from the same source...

Of course, if the intent is to make TRNC ever more dependent on handouts from Turkiye, then I could be wrong!

[benjaminbutton]

Turkiye was discussed fully on the early BBC business section. The 50% interest appears to have steadied and it was suggested by the UK interviewer that E=====n might not be interfering as much as previously. Obviously much more was discussed including how the Turkish TL affects the periphery . One assumes that was a reference to us.

[Reyntj]

Yes keith i agree with your last point.

[benjaminbutton]

I agree, he who pays the piper calls the tune. Anyone for advanced Turkish language lessons?

[frugal90]

The TL has stabilised do to increases in interest rates.

[frugal90]

In fact less that 45 TL to £1 today as projected decrease in interest rates in the uk

[Charlieboy]

Erdogan has ruined the country economically when I first came here it was one of the most up and coming countries with a good stable currencies

[benjaminbutton]

Yes same here, and HSBC were offering 22 - 24+ % on saving accounts. How times change.

[Charlieboy]

Was 2.7 L to the pound in ,2007

[Kanonier]

It's gone down considerably from when I came here in 1999, it was millions to the pound then.

[gates]

It went under 2 at one point

[benjaminbutton]

Thinking of pootling over to Turkey for a few days. Im assuming I should take sterling with me and change over there, or if anyone has been there lately, are restaurants and retail outlets asking for foreign currency automatically. Someone today suggested I take Euros but I don't want to exchange twice.

[tutor4u]

Thinking of pootling over to Turkey for a few days. Im assuming I should take sterling with me and change over there

Just come back from Izmir, use TL.

[TAC]

take TL change it here you get a much better rate then over in Türkiye

[benjaminbutton]

Many thanks for that.

[waddo]

Reyntj, I am confused, you state that this year wages have risen by 45% - how do you get that figure please? In January the minimum wage went up by 52%, in May the new minimum wage went up by 22.98 and then in September it went up again by 19.98. That is a total rise in minimum wage of 94.88%. Those figures are gross of course so you would have to take the net figures which I do not keep, surely the Social has not gone up by 49.88% as well??

[frugal90]

Of course it’s not quite as simple as adding each of the %age rises together, there is the cumulative effect of %age on %age!!!

[Reyntj]

Waddo i was comparing against tl depreciation & therefore the first rise on 1 jan is matched against last years tl depreciation and inflation and hence not included in my comparison. Salaries are increased retrospectively against inflation. So the comparison for the full year will include the next salary rise but not the first of the year .

[waddo]

OK, now understand, thanks for that.