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exchange rate
Posted: Tue 27 Aug 2013 2:03 pm
by davedee
When will the Lira stop falling over 3.15 tl to pound as I post!
Re: exchange rate
Posted: Tue 27 Aug 2013 3:19 pm
by Deniz1
When Turkey does something about it.
Re: exchange rate
Posted: Tue 27 Aug 2013 3:58 pm
by raffs
Turkish central bank has already spent USD 8.3 billion since June 11 to shore up the lira and simply cannot rely on currency intervention to protect financial stability as its reserves of USD 109 billion are insufficient and diminishing rapidly. The central bank has days or weeks at most to continue with dollar sales at current volumes but so far have nothing to show for it. In the present markets, it’s little more than squandering dollars.
They will have to raise short term interest rates 200 plus basis points, taking the overall rate to ten percent and then some!.
Re: exchange rate
Posted: Tue 27 Aug 2013 4:15 pm
by How188
If we have lira invested, should we worry?
Re: exchange rate
Posted: Tue 27 Aug 2013 4:33 pm
by raffs
How188 wrote:If we have lira invested, should we worry?
If central bank increase interest rates to compensate for your losses that might be a good start.
Of course we have the perfect storm scenario, trouble in Syria, fed tapering QE so emerging markets getting hammered. Last week was India's Rupee, this week its the Turkish Lira.