Tl depreciation

[Charlieboy]

Seems to be no end to the weakening of the Tl will it keep depreciating or will the central bank have to step in again and properly the currency up.

[buddy]

The Lira has been steadily depreciating since 2016 at that time it was about 3 to to the pound and it's just continued to slide !

[benjaminbutton]

I can clearly remember when it was 2.5 when we moved here then it went to 3.00 and panic set in when someone suggested it might go up to 10 by the Christmas (not sure which one though) We stuck 40,000 pounds in three different banks and interest was 25%. Central Bank will do whatever Turkey tells it to do.

[frugal90]

down to reduction in turkish interest rates and inflation came in hotter than expected in the Uk meaning interest rates higher for longer

[Charlieboy]

Buddy....i dont think it was 3 Tl = £1 in 2016 it was Tl 2.7 in 2006 then it went up to Tl 3 = £1....have read that it could be as high as Tl 70 = £1 by the end of the year

[compass]

Unfortunately the Lira has been depreciating for a very long time....
In 1997 we got 400,000 TL to the pound, this was the old currency though. In the early 2000,s they revalued it and 1,000,000 TL became 1 YTL (Y was Yeni which meant new)

Back in '97 £2.50 got you 1 million TL!!!!

So our 400,000 TL in 1997 was the equivalent of 0.4 YTL in the currency of today... that gives you some idea of the rate of depreciation....

Compass

[MVP]

When I first visted Turkey in the early 1980s I think it was 5 old TL to the pound.
Turkey has always had high inflation hence currency depreciation

[wrymouth]

It was around 530tl to the pound in January 1984 !

[Charlieboy]

When I first visted Turkey in the early 1980s I think it was 5 old TL to the pound.
Turkey has always had high inflation hence currency depreciation

Surely inflation is coming down now isn't it

[Reyntj]

Even at 46 % base rate turkeys economic & political state of play is causing havoc...they where talking about reducing rates at the next meeting before...who knows..unpredictable

Maintaining their inflation rate at 24% by year end seems tricky..

Having said that many here are purely focused on the £ rate when its really the $ tl rate thats significant and thats not fallen as fast..gbp usd is now c 135 to the $ up from lows of around 120 a few months back..

Usd try started the year at 35.36. its just hit 39.thats only 10 % depreciation
Considering one could make c 20 % interest over the period the carry trade has been in play.