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

[bsruzm]

2 liras with ayran included, so about $0.5.

2 lira with Ayran included? What are you eating, amk?

 

[UkroTurk]

2 lira with Ayran included? What are you eating, amk?

Martı ekmek Even in Ukraine chicken shavurma nearly costs 2$.

 

[SouI]

2 lira with Ayran included? What are you eating, amk?

That is the minimum price you can find it in Kadıköy.

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.

How would increasing interest rates also increase inflation??

higher interest rates = more expensive credit = less lending = less purchasing power = lower inflation

and also..

higher interest rates = more capital inflow = higher TL value = cheaper imports = more imports = lower inflation

also..

higher interest rates = more capital inflow = higher TL value = more expensive exports = more supply of goods and services in economy = lower inflation


Dont be another Erdogan on our heads

 

[Jlaw]

What a reduntand topic! Not just Turkish Lira is falling. Unfortenately usd is rising against other currencies.
i dont give any shit who is trying to humiliate Turkey. Go further , fuurther from us.

That's inaccurate.

 

[bsruzm]

That is the minimum price you can find it in Kadıköy.

Watch What you eat, don't get poisoned lol

 

[UkroTurk]

That is the minimum price you can find it in Kadıköy.


How would increasing interest rates also increase inflation??

higher interest rates = more expensive credit = less lending = less purchasing power = lower inflation

and also..

higher interest rates = more capital inflow = higher TL value = cheaper imports = more imports = lower inflation

also..

higher interest rates = more capital inflow = higher TL value = more expensive exports = more supply of goods and services in economy = lower inflation


Dont be another Erdogan on our heads

Ekonomi teorileri okullarda bütün şartlar sabitken bir değişkenle oynanmasıyla öğretildiğinden anlaşılması güç oluyor gerçek hayatta.
Krediler pahalı diye kredi almaktan Türk sanayicisi vazgeçemez. Çünkü sermayesi yok .Türk reel sektörü sermayeyi pahalı alıyor.kredi faiZlerinin maliyetini ürün fiyatına aynen yansıtılıyor. Yükselen faiz fiyatları artırıyor.
Yalnız şu andaki problemin talebi azaltarak çözmeye kalkarsanız, yeni bir kriz stagflasyon krizi yaratırsınız.

That's inaccurate.

Look from 2009 american dollar has been rising. American federal reserve as you said , increased interest rates.
Look all currencies from 2000 so far.
Short observations are deceitful.


But inflation is not rising in US because according to act of fed.res. in the world lack of dollar and it causes dicreasing prices particularly metal prices.

 

[Saithan]

Um... well, I live in Denmark and I remember when the USD went down to 4,8 DKK for 1 USD. and before the crises it was around 6,5. atm it's around 6,0. Now if you want to compare the USD development I'd say Denmark is a perfect country to compare it to.

The problem we have in Turkey is that the political instability, martial law, RTE rhetoric, and the lack of CB fiscal policies creates distrust, along with the problems in Syria etc.

Now some of the things that are going on is great if you're a nationalist, but if you're a business man, you're getting owned. I don't think Turkey has enough "money" to build all those things. Normally you would start major construction projects to help kickstart the economy. But at the moment we're stretching ourselves thin, and there could be a real danger of ending up pre 2000 economy. I still remember the 1000 TL bill and 25 kurus back before Tansu Ciller.

I wish something like TYT would be started in Turkey. I can tell you one thing that would happen, RTE would make sure it was shut down, or banned from being streamed in Turkey.

 

[OldTwilight]

The logic of a person who has an unlimited power for more than 15 years now:

- You take no real measures to fight a 60-70$ billion trade deficit a year.
- You keep scaring away most investors in your economy with your words and actions.
- Burn the bridges with most of your economic partners.
- Pump more and more Liras into the economy.
- Spend billions on filling the pockets of your loyal as* lickers and put them in every state institution and big project... Promote corruption in all levels of society.

In the end when your currency goes down the shitter and the economic bubble popps you blame the Enemies and the Traitors (West, Feto, CHP, Jews etc) for all the problems and the halfwits will scream Huloggg...

That’s Erdogan’s Turkey in a nutshell.

look like the real bad days are ahead of Turkey .... Erdo is just repeating what IRI doing for past 40 years ....

 

[Killuminati]

High interest rates so people come with 1 dollar and take away 2 dollar. Result? Bank getting empty.

 

[SubWater]

This is American war on Iran, Turkey and Russia.
$ is under USA control and they are using that to harm others.
However I believe this currency war would end USD dominance in the world and fire back on the American currency badly

 

[Killuminati]

The current power also created a strong sovereign wealth fund. Beside this the central bank has a huge dollar reserve. They cant collapse the Turkish economy that easy anymore..

 

[SouI]

High interest rates so people come with 1 dollar and take away 2 dollar. Result? Bank getting empty.

I am also against hot money. Me stating to be against inflation shouldnt be understood as me wanting higher interest rates.

There are other ways to lower the demand in the economy, the best way being increasing the taxes!

 

[Killuminati]

I am also against hot money. Me stating to be against inflation shouldnt be understood as me wanting higher interest rates.

There are other ways to lower the demand in the economy, the best way being increasing the taxes!

I m not a economical expert and be honest i really dont know anything about it but i think the main problem is that investors pulling their money away from Turkey. It creates a gap and to fill that gap you have to sell more goods to U.S or other countries that buy in dollar. Because of the political tensions the U.S doesnt buy more goods or worse than that even less. The imported products are rising in value and the avarage purchasinh power of people in TL are going back. The biggest problem is ofc oil and gas because the main source for industry is energy and industry means money and money means power.

I think that Erdogan knows what he is doing and knows the game very well. The relationship with Qatar etc. is not for nothing. If you can make good ties with countries that are selling oil instead of buying oil, then your dollar problem will be solved a bit because u can trade with these countries instead of U.S, the main source of dollar.

Also the Turkish economy is still expanding. Expanding rates are higher then inflation rates. We really have to start worrying when the economy doesnt expand anymore..

 

[Kamil_baku]

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.

DO you even know what makes Chine great?
the cost of Energy.... 75% of world coal reserves are in CHine and CHine use them in its economy even though its very very bad for the air pollution...
Turkey and CHine has almost the same amount of cost for workers, but energy prices are 4 times cheaper in CHine...
Turkey is touristic place, air pollution is very important for Turkey..
Thats why government just started to build nuclear energy... once, Turkey gets the technology and know how in the future, it can build way more nuclear energy or other wind and sonar energy to push its economy which is coming in coming decade..
I see that most of the people dont see the real picture...

 

[UserUnknown2025]

DO you even know what makes Chine great?
the cost of Energy.... 75% of world coal reserves are in CHine and CHine use them in its economy even though its very very bad for the air pollution...
Turkey and CHine has almost the same amount of cost for workers, but energy prices are 4 times cheaper in CHine...
Turkey is touristic place, air pollution is very important for Turkey..
Thats why government just started to build nuclear energy... once, Turkey gets the technology and know how in the future, it can build way more nuclear energy or other wind and sonar energy to push its economy which is coming in coming decade..
I see that most of the people dont see the real picture...

China has been investing a lot of money into renewable energy, three times that of the US. China is also making a lot of grounds in automation and artificial intelligence. It is incorrect to say that coal gives China an advantage of Turkey when in reality it is technology.