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Tl depreciation
Posted: Fri 23 May 2025 8:42 am
by 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.
Re: Tl depreciation
Posted: Fri 23 May 2025 11:19 am
by 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 !
Re: Tl depreciation
Posted: Fri 23 May 2025 12:08 pm
by 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.
Re: Tl depreciation
Posted: Fri 23 May 2025 12:56 pm
by frugal90
down to reduction in turkish interest rates and inflation came in hotter than expected in the Uk meaning interest rates higher for longer
Re: Tl depreciation
Posted: Fri 23 May 2025 5:51 pm
by 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
Re: Tl depreciation
Posted: Fri 23 May 2025 7:13 pm
by 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
Re: Tl depreciation
Posted: Sat 24 May 2025 8:37 am
by 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
Re: Tl depreciation
Posted: Sat 24 May 2025 9:42 am
by wrymouth
It was around 530tl to the pound in January 1984 !
Re: Tl depreciation
Posted: Sat 24 May 2025 9:54 am
by Charlieboy
MVP wrote: ↑Sat 24 May 2025 8:37 am
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
Re: Tl depreciation
Posted: Sat 24 May 2025 10:31 am
by 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.