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Erdogan’s zany monetary experiment is impoverishing Turkey

IblinI

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The economic situation of Turkey in 2021 is better than that of Greece in 2009.
If Greece can get rid of the economic crisis, Turkey also has a chance.
Greece doesn't have multiple fronts that need to be taken care of.
 

MH.Yang

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Greece doesn't have multiple fronts that need to be taken care of.
What is the difference between Turkey in 2021 and China in 1994?
Turkey before 2021, like China before 1994, has an overvalued currency, so foreign exchange is very scarce.
In 1994, CNY fell from 5.7 to 8.7 against the US dollar, and the exchange rate fell by 65.5%, in 2021, Turkey only repeated the Chinese practice.
The Chinese people have rapidly expanded exports and employment through devaluation of the currency, activating the development of China's economy in trouble, erdogan clearly wants to repeat the path we have taken.
 

Foinikas

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MH.Yang

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Erdogan is learning from the decision of the Chinese govt in 1994, which is an expression of courage and wisdom.
 

MH.Yang

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So you admire Erdogan
No, I don't admire it for the time being.
It is one thing to have the courage to learn, but another to succeed. The Chinese govt have ability to play with fire, it does not mean that other govts have the same ability.
If Erdogan succeeds, I admire him.
 
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retaxis

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Erdoggy has ruined Turkeys economy and now has ruined turkeys military (can not activate s-400s and no f-35s). Everyone knows Turkey military industry is a joke and will not be able to make its own s-400s or jet fighters within the next 30years all thanks to erdoggy
 

dBSPL

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The rise in freight markets creates opportunities for emerging and manufacturing economies on the European border. Although it is not discussed much here, the Turkish economy is in a rapid trend from a service-oriented structure to a production economy. For nearly 20 years, Turkey has made huge investments in its infrastructure and energy sector according to its own capacity. Some of these investments have the support of China and even Russia. Because China's BRI-oriented and Russia's euroasian policies are mostly aligned with Turkish state interests. In addition, net energy exporter and brotherly countries such as Algeria, Qatar and Azerbaijan continues their large investments in the field of energy.

The most important problem of the Turkish economy is not the inflation pressure created by the dollar. Most important problem was that a deficit in the current account balance. The basis of this problem was that it was a net energy importer country and had an import-oriented economy. Decades later, we are on the verge of ending this problem permanently. Of course, there is also an economic conflict created by the military/political separation with the West. This causes the devaluation process of the trying to be experienced in a much shorter period, so that in a way it has to face the inflation pressure.

*

Turkey's central bank foreign exchange and gold reserves are at their highest point in history. Turkey now holds not only the dollar and the euro, but also China and some other countries' currencies as reserves. Turkey's exports are breaking records every month, EVERY MONTH. Despite the covid scourge, in 2021, Turkish economy's current account balance will start to give a surplus( which is one of the most important milestones after decades). Turkey is one of the few countries in Europe whose industrial usage capacity is constantly increasing and which can maintain its growth trend. In the next 10 years, especially Akkuyu NPP, there will be a big leap in energy supply again. Turkey has completely covered the logistics and infrastructure deficiencies, in this respect, many countries in eastern Europe look like villages when compared to the renewed infrastructure in Turkey.

Of course we are not in a rose garden. However, considering the global economic developments and the impending perfect storm, as well as Turkey's geopolitics in the coming decades, the positive indicators outweigh the negatives. TRY is depreciating, yes. But you talk only by looking at one side of the coin and with newspaper headlines. Most of you seriously need to learn something in economics.
 
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Shotgunner51

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The rise in freight markets creates opportunities for emerging and manufacturing economies on the European border. Although it is not discussed much here, the Turkish economy is in a rapid trend from a service-oriented structure to a production economy. For nearly 20 years, Turkey has made huge investments in its infrastructure and energy sector according to its own capacity. Some of these investments have the support of China and even Russia. Because China's BRI-oriented and Russia's euroasian policies are mostly aligned with Turkish state interests. In addition, net energy exporter and brotherly countries such as Algeria, Qatar and Azerbaijan continues their large investments in the field of energy.

The most important problem of the Turkish economy is not the inflation pressure created by the dollar. Most important problem was that a deficit in the current account balance. The basis of this problem was that it was a net energy importer country and had an import-oriented economy. Decades later, we are on the verge of ending this problem permanently. Of course, there is also an economic conflict created by the military/political separation with the West. This causes the devaluation process of the trying to be experienced in a much shorter period, so that in a way it has to face the inflation pressure.

*

Turkey's central bank foreign exchange and gold reserves are at their highest point in history. Turkey now holds not only the dollar and the euro, but also China and some other countries' currencies as reserves. Turkey's exports are breaking records every month, EVERY MONTH. Despite the covid scourge, in 2021, Turkish economy's current account balance will start to give a surplus( which is one of the most important milestones after decades). Turkey is one of the few countries in Europe whose industrial usage capacity is constantly increasing and which can maintain its growth trend. In the next 10 years, especially Akkuyu NPP, there will be a big leap in energy supply again. Turkey has completely covered the logistics and infrastructure deficiencies, in this respect, many countries in eastern Europe look like villages when compared to the renewed infrastructure in Turkey.

Of course we are not in a rose garden. However, considering the global economic developments and the impending perfect storm, as well as Turkey's geopolitics in the coming decades, the positive indicators outweigh the negatives. TRY is depreciating, yes. But you talk only by looking at one side of the coin and with newspaper headlines. Most of you seriously need to learn something in economics.
I share the same observation and opinion, it's more like a painful but necessary process during an economic transition, which as described by Erdogan a "war of economic independence", war is never easy.

Yes China does invest heavily in infra/energy with a vision that Turkey will eventually transition into a manufacturing/exports powerhouse right at doorstep of EU, one example is the Hunutlu Thermal Power Station (photo in May 2021) built with 2×660 MW advanced ultra-supercritical units, a FDI to Turkey by Shanghai Electrical. I believe Lira will regain position when structural change in her international BoP (incl. current account) is achieved in the long run.

22001621210412.jpg
 
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dBSPL

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I share the same observation and opinion, it's more like a painful but necessary process during an economic transition, which as described by Erdogan a "war of economic independence", war is never easy.

Yes China does invest heavily in infra/energy with a vision that Turkey will eventually transition into a manufacturing/exports powerhouse right at doorstep of EU, one example is the Hunutlu Thermal Power Station (photo in May 2021) built with 2×660 MW advanced ultra-supercritical units, a FDI to Turkey by Shanghai Electrical. I believe Lira will regain position when structural change in her international BoP (incl. current account) is achieved in the long run.

View attachment 798009
Not only this. Especially in the mining and energy sector, many private business partnerships have started to be established. China is among the countries that support Turkey's infrastructure policies, especially in funding new railway investments within the scope of BRI. Together with the new airport and the new port, Kanal Istanbul project as a whole, aims to strengthen Istanbul's hub feature, and also it is calculated that it will have a positive factor on China's trade with Europe. In addition, the second (Sinop) NPP plant will probably be built in partnership with China. In short, for the first time, China-Turkey relations have had the opportunity to find ground on mutual interests and great commercial potential, which will ensure that the dynamics of China-Turkey relations in the coming decades will have a strong foundation.
 

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