As lira hits record lows, Turkey's Erdogan cites attack on economy

[Stryker1982]

The difference between Turkey and let's say Iran is that we could revalue our currency immediately if we want to by increasing the interest rate significantly.

Compared with other nations in similar situation, we Turks really have options.

Still, it is up to the government to decide on a different economy policy.

This is true, I'd suggest to my turkish friends on this sub (Erdogan) to not go against America or those options will become very few, very fast. Iran has already paid the economic price for opposing them.

 

[mahatir]

Oil is the main contributor to Turkish account deficit, if Turkey starts encouraging people to use electric cars the deficit will fall to an acceptable level.

Gas also is another contributor, once Turkish mega renewable energy projects are over then this should also drop.

 

[Blackwolf12]

Oil is the main contributor to Turkish account deficit, if Turkey starts encouraging people to use electric cars the deficit will fall to an acceptable level.

Gas also is another contributor, once Turkish mega renewable energy projects are over then this should also drop.

Are you going to pay for 80 Tesla model S's for every turk? Talking is easy.

 

[Thəorətic Muslim]

I would prefer to see Erdoğan as president of Turkey rather than putin or hizbullah.

I would prefer if you guys could loan him to Pakistan. Lutfen? Guzel Lutfen.

 

[UkroTurk]

Oil is the main contributor to Turkish account deficit, if Turkey starts encouraging people to use electric cars the deficit will fall to an acceptable level.

Gas also is another contributor, once Turkish mega renewable energy projects are over then this should also drop.

Who says? As an industrialcountry Turkey's economy is bound the price of raw materials and intermediate products.
Turkish industry using electricty for mass production .More over Turkey's industry produces its energy not from oil!

a citizen of some countries that dont produce ,just consume cant understand.

I would prefer if you guys could loan him to Pakistan. Lutfen? Guzel Lutfen.

Only Soloman the Magnificient could help you

 

[Baybars Han]

We have no independent central bank, we have a president who is as stupid as the retards in social clubs that can't read and write.

If you don't increase interest rates the TL is going to get worse and worse. We probably pay the most tax in the world for cars, petrol everything.

Inflation is ridiculous, TL is on the floor and our only weapon is interest rates to stop this. If central bank don't increase it in the next meeting its going to get worse.

 

[UkroTurk]

Turkish national bank is not as same as american Federal reserve
Nowadays İf they rose interest rates, Turkish Lira would fall as hell. You cant notice the fact Turkish currency is not just falling against USD. in contrary USD is getting stronger.
İn order to get lira stronger, we need real industrial economy and export with strong countries.
Economical fluctuations of Turkey's partners as Russia, Iraq, UAE have been influencing on predictions of Turkish exports.
Thanks god 50% of our partners are Europeans.

 

[mike2000 is back]

This is true, I'd suggest to my turkish friends on this sub (Erdogan) to not go against America or those options will become very few, very fast. Iran has already paid the economic price for opposing them.

Lol True to some extent, However i dont think Turkey will ever have a radical relationship with the West like Iran. Forget about the cheap talk and noise some Turkish officials have been engaging in. Its just political posturing nothing really tangible. Iran's situation is totally different fron Turkey. Moreover Turkey is a full NATO member and they enjoy a favourable economic trade partnership(closer than any muslim country with the world's wealthiest/ largest economic bloc (E.U) unlike Iran who has long chosen to alienate itself from the West and has barely any meaningful trade ties with the West. Hence, Iran has very little room to maneuver, this can be seen in their dismal economic performace vis a vis Turkey/KSA and other gulf States . However, their leaders made their choice and policies and they seem content with the current situation . So to each his own.

 

[SouI]

Nowadays İf they rose interest rates, Turkish Lira would fall as hell.

Apart from this one, you are correct.

But having high inflation too isnt helping our economy as it also rewards inefficient companies in our economy, helping the unsustainable inefficient part of our economy.

Those companies SHOULD go bankrupt and let efficient companies fill the gap instead. That is how you increase the efficiency of the economy and thus grow the economy!

 

[UkroTurk]

Apart from this one, you are correct.

But having high inflation too isnt helping our economy as it also rewards inefficient companies in our economy, helping the unsustainable inefficient part of our economy.

Those companies SHOULD go bankrupt and let efficient companies fill the gap instead. That is how you increase the efficiency of the economy and thus grow the economy!

in Turkey increasing interest rates can cause high inflation and depreciation of national valute.
If you offer higher interest rates it will lead spending more money to loans from budget. Big loans will cause decrise of national money.Then You could lose your reliability.
People could prefer dollar as an instrument of trade and also Turkish companies dont have big capital thus cost of borrowing could rise.
High interest rates have caused inflation in Turkey so far.
Edit: Are you complaining inflation or increasing of dollar in Turkey?
Dollar is rising because they are leaving us How could you stop raise ? Giving more interest rates then be ready to spend back! İt is very complicated in growing economies. Just to increase something can help in healty rich growth countries.
Sermaye maliyeti ve döviz stokları key factors for us.

 

[Oublious]

in Turkey increasing interest rates can cause high inflation and depreciation of national valute.
If you offer higher interest rates it will lead spending more money to loans from budget. Big loans will cause decrise of national money.Then You could lose your reliability.
People could prefer dollar as an instrument of trade and also Turkish companies dont have big capital thus cost of borrowing could rise.
High interest rates have caused inflation in Turkey so far.
Edit: Are you complaining inflation or increasing of dollar in Turkey?
Dollar is rising because they are leaving us How could you stop raise ? Giving more interest rates then be ready to spend back! İt is very complicated in growing economies. Just to increase something can help in healty rich growth countries.
Sermaye maliyeti ve döviz stokları key factors for us.

That sounds good to me but what base on what?

 

[Kiryu]

Erdogan doesn't help by spreading conspiracies which deflects from the real problems of the economy. There is no foreign secret cabal that is trying to manipulate Turkey. Foreign investment is done by bankers, investors and businessmen. They aren't controlled by their governments, if anything its the other way about.
I'll give an example. My work pension is done by a guy who is couldn't care about politics. Couldn't care less about what government is in charge of what country. The only thing he cares about is if the weather will be good enough for a round of golf at the weekend. There are hundreds of thousands of guys like him in charge of trillions in investments.
I remember speaking to him years ago about how he invests the pension. We decided it would go into an EM fund which I specifically asked if Turkey was included. At the time the performance was doing well. But now he has limited his investments in EM funds and spread them more into other investments. Nothing political, he wasn't being compelled by some freemason or jew. The risks to rewards were too great to justify it. I'm sure its the same for fund managers all over the world. Turkish growth is impressive but the risks are still high. Reduce those risks and Turkey will be a great place to invest in.
If Turkey wants to increase FDI it needs to create an environment were investments are perceived as safe. Which means stop pushing out businesses and handing them to your friends and family. This is called corruption. No one wants to put their money in a company if they dont know if in a years time it's going to get taken over by the government or a government ally.
It's these apolitical investors who are making the decisions, not their governments or cabals or "interest rate lobbies".

Another factor is production. China became a rising global economic power by becoming the factory of the world. They attracted investments in factories and facilities to cheaply produce many components that were in demand around the world. How much does the government invest in building new factories? Creating supply chains to feed these factories? Turkey is in a great position to attract investments in production because of its location and free trade association with the EU. Can't compete with cheap labour with China but as china develops their workforce becomes more expensive and the greater distances to wealthy EU markets make Turkey more attractive.

Of course Turkeys main cause for it's trade deficit is energy imports. There isn't too much the government can do about it. They are doing the right thing building nuclear power plants and hydro power. Ignore the criticisms and build more dams, take advantage of it's sun potential and invest in solar power and explore for gas and oil.

 

[UkroTurk]

Şu andaki problem yüksek talepten dolayı artan enflasyon değilki piyasadan parayı çekince fiyatlar düşsün.Talep değil döviz kuru problem.


The cause of the current inflation in Turkey is not in high demand, high dollar exchange rate causing high inflation.On contrary you couldnt decrise prices if you dropped demand to zero level ,because all inputs, the raw materials are sold by dollar, the producers buy in dollars.



We are in globalisation we are not South Korea and we dont have big capital so we arent USA.
Dropping demand by interest rates will cause homicide.

 

[jamal18]

A fall in the value of currency is an inevitable result of low interest rates. However, business love low interest rates and this can lead to higher long term growth.

 

[Successwill]

Actually it is the gap between interest and infilation..In Türkiye interest rate is already too high then why the investors leaving? Simply because infilation is also very high so the investors cant make profit..

I dont think reducing interest will automatically get the infilation downwards, this is somewhat of a deadlock. Only the measures that will reduce the infilation eventually will be the cure of interest rate.