Turkish Economy - News & Updates

[Bismarck]

ok , your lose

No, I don’t think so. Trump do the right thing to protect his country. We will follow his example soon.

 

[Faith_of_the_Fallen]

Yes, the whole world wants to destroy you. If this is true, you think on yourself, but this is too much to ask. Never look on yourself, always search failers by the others. Reflection is not your thing. Any form of criticism is considered an attack on the nation and honor. Yes, Trump pour oil into the fire, but it was not he to decided that Erdogan should control central bank with Islam rules (no interests) and nepotism (his son of law is financial minister). This deters investors. Many reforms are waiting which are not made. Criticism is the biggest driver for further development.

Your answer is not related to what i said. "Never look on yourself, always search failers by the others. Reflection is not your thing. Any form of criticism is considered an attack on the nation and honor" what is this? This is irrelevant. I never blamed the current economic problems on anyone else. Did you read anything about it? I was talking about the shorthsighted administration of populist AKP government. He fooled the public , dangled EU membership as a success to the public, while Sarkozy, English president, Merkel were saying exactly the opposite. EU accession talks are always used as a political tool. Erdoğan has no qualifications; however, he is master of spinning current events into a political capital. People like me have been tracking what has been happening for years,while Erdoğan has been fooling the public. I am just stating facts, not blaming anybody. If a country is acting based on delusions, public hysteria and wishes, that country deserves to be kicked like a homeless dog; i was laughing when people were talking about the possibility of joining EU with their balloons. I am just stating facts. Turkey spent way to long and deluded itself to be part of a Western organization, while leaders of the Western world were clearly time and time again saying the opposite. Look where it got us: complete dependency on EU relations, no other future projections other than becoming a part of Western civilization. If the politicians have seen the reality instead of fooling the public, we would have much better realistic alternatives for regional cooperations right now.

 

[GeraltofRivia]

You can solve this problem in a middle/long term by cheap energy from Azerbaijan and north Iraq. Also, by nuclear plants and renewable energy (sun, water and geothermal). Your problem is still goods from China.

Um... if Turkey doesn’t like to import goods from China, I am sure it can import the same things from Germany, or from Japan, or from Korea, or from US. It is very welcome to do so. It will simply move the trade deficit from China to these countries, same deal...

 

[xenon54 out]

No, I don’t think so. Trump do the right thing to protect his country. We will follow his example soon.

Trump is ruining American economy.

 

[Pan-Islamic-Pakistan]

Turkey's economy is extremely closely integrated with Europe. It is near impossible to decouple from it without a major fallout on the economy. It should take decades long well-managed process. For example, automobiles. Take out Europeans, Turkey has little automobile industry.

I believe Turkey's place is in the West. This does not mean it may not start to do business (more of it) with East Asia. But, it is better Turkey stay close to the West and get inspired by its political system.

Turkey is a middle eastern country with its face turned to the West. Take away the West, Turkey will become more of a Middle Eastern than Far Eastern.

Because there is this religion factor, which is incompatible with Far Eastern cultural DNA.

Hence, authoritarianism in the Middle East leads to underdevelopment. Unlike in the Far East. Our entire development fundamentals have been set up during authoritarian rule from Taiwan region to Korea and ( de facto near single-party state) Japan.

Non-sense and stereotypes. Europeans are not gods and East Asians are not a super-race.

Turkey should stay true to its roots and move away from US dependence. Turkish economic success is based on embracing its own identity, instead blindly imitating others.

 

[TOTUU]

@Sinan What is the reason for the decline of the Turkish lira? Is it caused by the United States? A little too sudden . . . . I know it by trump's twitter .

 

[Adıvar]

The reason Turkey's economic collapse is so scary is that Iran, Russia, and Syria are waiting in the wings

Samantha Lee/Business Insider

• Lots of things are going wrong in Turkey at once, driven by the collapse of its currency, the lira.
• The West needs Turkey to be strong, as Turkey is a physical buffer between Europe and the war in Syria.
• US sanctions have annoyed Turkish President Recep Tayyip Erdogan, who says he is now in search of "new friends."
• The worst-case scenario for the West? Potential "new friends" include Iran, Syria, and Russia — Turkey's neighbors, who also suffer from US sanctions.

What if Turkey collapses?




It's not outside the realm of possibility. Turkey's currency is in free fall. Inflation is at 15% and climbing. The Turkish economy could enter a recession. The US has imposed economic sanctions on the country because President Recep Tayyip Erdogan refuses to hand over an American preacher who has been jailed there.

Lots of things are going wrong in Turkey, all at once.

As this map shows, Turkey may not be important economically — in terms of contagion to the rest of the global economy — but it sure is important strategically and militarily.

Turkey is the bridge between the democratic, peaceful West and the war-ridden dictatorships of the East.

How strong do we want this bridge to be?

asdfCountries ranked by the percentage of their exports that go to Turkey.Credit Suisse



Turkey is the thing that physically prevents the wars in the Middle East from rolling into Greece
If you are not confident about where Turkey is on the map, you are not alone. It's only when you see Turkey's borders that you realize why everyone is freaking out about the lira crisis.

On its Western flank, Turkey borders Greece and Bulgaria, Western-facing members of the European Union. A few years ago, Turkey — a member of NATO — was preparing the join Europe as a full member.

Turkey's other borders face six nations: Georgia, Iran, Iraq, Syria, Armenia, and Nakhchivan, a territory affiliated with Azerbaijan. Five of those are involved in ongoing armed conflicts or outright war.

Turkey is the thing that has physically prevented the Islamic State terrorist group from rolling into Greece. It keeps the Syrian war inside Syria. It prevents the Russians from rolling back into Bulgaria. And it deters the Iraqis, Iranians, and Kurds from escalating their various conflicts northward into Europe.

That's the reason Turkey has the largest standing army in Europe. We need Turkey to be strong and stable, in other words.

That's why two recent moves by Erdogan are so chilling:

• His op-ed article in The New York Times on Sunday, in which he described his angry response to US economic sanctions: "Turkey has alternatives. Failure to reverse this trend of unilateralism and disrespect will require us to start looking for new friends and allies."
• His belief that interest rates are "evil." His central bank — which he now controls — has declined to increase interest rates to fight the country's spiraling inflation. He has historically argued that high interest rates actually cause high inflation. (In reality, high interest drives down inflation by making money more expensive and therefore more scarce. It is not clear that Erdogan understands basic economics.)

Erdogan's economic illiteracy is particularly worrying
asdfThe lira has lost 45% of its value against the US dollar this year.Yahoo Finance



In the immediate term, Erdogan's economic illiteracy is particularly worrying: Turkey's biggest, easiest weapon to contain its crisis is higher interest rates.

In principle, when a central bank raises interest rates, it sells bonds, taking in currency from those sales, and thus makes its own money more scarce and more valuable.

High rates would also encourage savers to put money into Turkish banks. That is exactly what Turkey needs to prevent a run on its central bank and a wider economic collapse. And it is the one tactic Erodgan — bafflingly — doesn't believe should be used.

He is condemning his nation to an inflation spiral that will, unchecked, look like the hyperinflation of the Weimar Republic.

The worst-case scenario: a Turkish government in search of 'new friends' to bail it out
From a strategic or military point of view, Erdogan "looking for new friends" is even more worrying. Turkey suddenly has a lot in common with Iran, Syria, and, across the Black Sea, Russia: They are all the targets of US sanctions.

Do we really want Turkey to turn toward Iran, Syria, or Russia? Because that's one potential outcome if the West cannot find a way to keep Erdogan inside the fold.

What is the endgame here, if Erdogan doesn't reverse course on interest, or if the US maintains or increases its sanctions?

The worst-case scenario is a Turkish government that cannot pay the army that controls its borders, in search of "new friends" to bail it out.

Thus the lira continues its plunge

https://www.businessinsider.de/what...ran-russia-syria-are-waiting-2018-8?r=US&IR=T

"Turkey's other borders face six nations: Georgia, Iran, Iraq, Syria, Armenia, and Nakhchivan, a territory affiliated with Azerbaijan. Five of those are involved in ongoing armed conflicts or outright war.

Turkey is the thing that has physically prevented the Islamic State terrorist group from rolling into Greece. It keeps the Syrian war inside Syria. It prevents the Russians from rolling back into Bulgaria. And it deters the Iraqis, Iranians, and Kurds from escalating their various conflicts northward into Europe"

 

[Viet]

Turkeys trade volume with USA is how much? $10 billion. How much attributable of steel and aluminum?



Sorry, that’s bullshit. You don’t need to be a professor of economics to be financial ministers. Or do you really thing a minister of Defence must be a high decorated military.



In Turkey impossible. They have a man who wants to control everything. No place for independent committee.

The US has hardened the rhetoric following the Europeans. I can’t understand how a man obviously uneducated in economics and diplomacy successfully fools the mass and leads the country over a cliff. It is not worth sacrificing the entire country of 81 million people over the fate of a single US citizen.

 

[Hakikat ve Hikmet]

This is a financial war imposed on Turkey by the Trump administration based on $ to TL ratio!!! Morgan Stanley has been earmarked to carry out the ops from their London office!!! It's a do or die situation for Turkey!!! Either they will prevail upon $, or $ will prevail upon them!!! All out efforts from all financial, legal and law enforcement agencies have been put into action on a war footing!!! All domestic currency manipulators in different financial organizations and markets are being short listed as being terrorist traitors and agents under enemy entities!! They should try their best to flee for they will end up with their throats being slit into two!!!

As for the economy itself, no significant macro economic issues are present!! Liquidity isn't an issue!!! Support from Grrmany, Russia, Qatar etc. have poured in!! 6b TL, 3b$, and 3b$ of gold have been already injected into the markrt. It's mostly the tourists who are queuing at the money exchanges!! 50b$ is kept as s stand-by!!! Political leaders have asked the Turkish folks to remain ready with 75b$ they privately own!!!

Hodri Meydan...

La Galibe Illallah...

 

[TaiShang]

Non-sense and stereotypes. Europeans are not gods and East Asians are not a super-race.

Turkey should stay true to its roots and move away from US dependence. Turkish economic success is based on embracing its own identity, instead blindly imitating others.

Turkey's own identity is secularism and peaceful foreign policy and non-interference with neighbors.

One of the major tasks for Turkey is indeed to turn back to its roots of secularism, pragmatism and scientism.

 

[Agha Sher]

The Turkish Lira has gained considerable strength since markets opened this morning. Currently trading at USD/TRY 6.4 down from 7 when markets closed yesterday.

have we seen the worst or is this just a temporary development?

 

[SubWater]

Best wish for Turkey against Americans
Turks surprised me for their strong stands against America

 

[TrMhMt]

Economy wind has started to wind opposite direction since the rumor has came out that pastor is going to release.

Let's bring it back to stable conditions. After that Turks must avenge their lost by doing boycott on us goods. Hope our government will not tolerates for us originated so called missionaries any more.

We have learnt a great lesson from this incident.

 

[shah_123]

It's like the silence before the storm....prices not got raised yet, but we expect them rise soon...

For instance the Volkswagen cars being sold today had been paid and shipped from Germany 3 months ago...so, 3 months later it would be bought with today's currency, So the car prices will double and it would be not affordable to buy cars for common people.

No problems, buy second hand used cars. can't afford it buy motor bike. can't afford buy bicycle, even if it means to buy a donkey cart, but don't bow to economic blackmailing/war imposed by Donald duck ---------- The Volkswagen producing country will speak ( they are already speaking) when their cars will stop selling. --- things are not as simple as Donald duck thinks.

 

[Killuminati]

Economy wind has started to wind opposite direction since the rumor has came out that pastor is going to release.

Let's bring it back to stable conditions. After that Turks must avenge their lost by doing boycott on us goods. Hope our government will not tolerates for us originated so called missionaries any more.

We have learnt a great lesson from this incident.

If we release Brunson nobody will take Turkey serious anymore. I dont think that this will be the case cause Erdogan said that he has to options to give response back. One is economic, second is political. Political response to U.S sanctions will be damage the relationships and U.S will be the one thats going to suffer the most. U.S cant just throw away 60+ years.

Aq ulkede hukuk var. Diger bir ulke tehdit ettigi icin bir tutukluyu serbest birakmakta ne oluyor.

Erdogan made a new boycot statement: ''We will boycot U.S electronical devices. If they have Iphone, other side have Samsung...''

Very smart!!!