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Saithan

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Interesting explanation. Let’s add to that RTE / goverment projects in USD.

The shortsighted selling of FX is like a snowball rolling before you.
 

Saithan

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So this is RTE reaction to TB2 sanctions ?
 
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Turko

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Turks chase missing billions in foreign exchange reserves​

When a flood of posters and banners appeared this month bearing the quantity 128 on them, police had been fast to tear them down — arguing that they insulted President Recep Tayyip Erdogan, against the law in Turkey.
“The place is the $128bn?” requested the opposition Republican Individuals’s social gathering (CHP) on banners hung from its workplaces throughout Turkey, referring to the cash it says the central financial institution has used to shore up the lira in recent times. Estimates fluctuate extensively over the quantity spent, and Erdogan on Wednesday put the determine at $165bn — the very best evaluation but.
The opposition and different analysts say that this confusion illustrates the shortage of transparency and poor governance on the coronary heart of Erdogan’s financial coverage, extensively lambasted for its failure to stem inflation and halt the lira’s depreciation.
“All we’re asking is a query however the response makes clear even that isn’t allowed,” stated Gokce Gokcen, the CHP’s deputy vice-president for youth affairs. “The $128bn represents a really fundamental downside in governance in Turkey, the place the administration lacks transparency and belief. We don’t know if the cash was depleted to peg the foreign money, to whom it was offered, whether or not it left Turkey or if there was profiteering,” she added.
For a lot of Turks, the alternate fee is a barometer of financial success, and Ankara deployed its reserves — the overseas belongings a central financial institution holds to offset a nation’s liabilities — forward of elections in 2019 and in 2020 through the pandemic in an effort to prop up the lira. It nonetheless tumbled 37 per cent towards the greenback within the 18-month interval till November 2020.
Critics accuse the financial institution of cloaking the quantity it offered by avoiding public debt auctions, failing to publish knowledge on the interventions and exhibiting swaps, or borrowed funds, as belongings on its stability sheet. The central financial institution governor stated knowledge was shared according to worldwide requirements “in a particularly clear method”. A spokesman declined to remark additional.
Erdogan on Wednesday railed towards the CHP’s expenses as “hullabaloo” and “treachery” meant to frighten off overseas traders. Worldwide reserves at the moment are near $90bn and “can be utilized when needed”, he advised his social gathering members. Goldman Sachs estimates the central financial institution has unfavourable internet overseas belongings of $60bn.
Recep Tayyip Erdogan, Turkey’s president. The opposition says there’s a lack of transparency on the coronary heart of his financial coverage © Adem Altan/AFP through Getty Photos
Erdogan additionally supplied an account of the spending for the primary time, saying $165bn was used up to now two years “when Turkey was confronted with an unprecedented demand for overseas alternate” to finance the present account deficit, portfolio outflows, corporations’ foreign-denominated loans and residents’ demand for gold and foreign exchange.
A self-described “enemy of rates of interest”, Erdogan had successfully barred policymakers on the time from elevating charges to sluggish double-digit inflation, leaving them with few choices to forestall the lira’s depreciation.
Erdogan in March fired the third central governor in underneath two years after he raised charges greater than anticipated and put in Sahap Kavcioglu, a tutorial who had defended utilizing the reserves in his newspaper column. The shake-up additional eroded central financial institution independence and unleashed extra market turmoil.
“The president’s basic view of rates of interest determines central financial institution coverage, and political affect was behind the dimensions of the destruction of reserves,” stated Ugur Gurses, an economist and former central banker. “Absolutely disclosing the extraordinary quantities of overseas alternate that did not cease the lira’s depreciation would quantity to admitting a political failure.”
Analysts Atilla Yesilada and Murat Ucer of the consultancy World Supply Companions stated it was unlikely the cash enriched members of the federal government or corporations near it, however the lack of the financial institution’s buffers “doesn’t render the scenario any much less terrible”.
“These reserves had been misplaced in an effort to ‘maintain the unsustainable’, which is bound to go on document as one of the misguided coverage mismanagement episodes in fashionable financial historical past,” they wrote in a analysis notice.
Erdogan has lamented the “ingratitude” proven for his son-in-law, the previous finance minister Berat Albayrak who oversaw the coverage of interventions till his sudden resignation in November because the lira sank to document lows. Three members of the CHP’s youth wing had been detained this yr for possessing flyers with Albayrak’s picture, saying he was “wished” in reference to the “misplaced” reserves.
The opposition’s most up-to-date stunt seems to have resonated with a public whose per-capita revenue has shrunk by a 3rd in greenback phrases since 2018.
#128MilyarDolarNerede (#Whereisthe$128bn) has trended on Twitter and was within the prime three searches on Google final week in Turkey.
The CHP, out of energy for 1 / 4 of a century, has created a web site, www.128milyardolar.net, the place customers strive however inevitably fail to spend $128bn by “purchasing” for gadgets akin to meals, a coronavirus vaccine, an airport or the Houston Rockets basketball crew. Its chair, Kemal Kilicdaroglu, hosted a tackle the quiz present Who Desires to Be a Millionaire? on Instagram with questions criticising financial coverage.
Whereas central banks don’t use their reserves to fund authorities spending, in lots of Turks’ eyes, that is public cash. “It pains me after I assume that cash might have gone to serving to individuals through the pandemic, to saving jobs and shopping for extra vaccines,” stated Ozkan, a 23-year-old {hardware} salesman who declined to offer his surname.
— to www.ft.com

 

Saithan

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Ryder

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maybe it is not bad thing to ban all crypto currency, it weakens state institutions.

There is no confidence in state institutions that people are using cypto.

The Lira is sinking and the people are abandoning the ship. You cant police the internet.
 
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Glass🚬

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Perhaps moving the assets abroad out of RTE reach is what they are doing so the shareholders have value abroad.

I think this was a move backed by the gov to keep Turks away from crypto. Turks lack critical thinking which is why a lot of them hoped into the train believing they will turn into millionaires immediatly and to keep Turks away from crypto the gov has now supported this move, u also see gov newsletters making huge headlines out of this more as a warning.
 
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Sinan

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maybe it is not bad thing to ban all crypto currency, it weakens state institutions.
Bitcoin is not to blame.

In Turkey there are no regulations for "Cryptocurrency markets". Anyone can found one, and state is not regulating them. There are no laws in this regard. So, the guy siphoned all the coins in his company and flied away.

CHP put a motion for the regulations in the past....but rejected by the government as usual.
 

Ryder

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The guy who did the scam ran away to Albania 🤣🤣🤣

Out of all countries he chose Albania 🤣🤣
 

mulj

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There is no confidence in state institutions that people are using cypto.

Lira is sinking people are abandoning the ship. You cant police the internet.

Bitcoin is not to blame.

In Turkey there are no regulations for "Cryptocurrency markets". Anyone can found one, and state is not regulating them. There are no laws in this regard. So, the guy siphoned all the coins in his company and flied away.

CHP put a motion for the regulations in the past....but rejected by the government as usual.
I am not trying blame anybody but all digital currency concept is more shady then ordinary one, pity that regulation is declined, it is much needed or state owned digital currency.
 
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Sinan

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I am not trying blame anybody but all digital currency concept is more shady then ordinary one, pity that regulation is declined, it is much needed or state owned digital currency.
Bro, any state regulated cryptocurrency will die. The whole blockchain technology and crypto-currency system came to life as an alternative to state regulated central banks and it's currencies.

In fact most of the coins are transparent, you can directly look at their codes, it's open sourced.
 

mulj

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Bro, any state regulated cryptocurrency will die. The whole blockchain technology and crypto-currency system came to life as an alternative to state regulated central banks and it's currencies.

In fact most of the coins are transparent, you can directly look at their codes, it's open sourced.
Well, that is the wish of ordinary people, especially those who are already in circles, i read little about it and i concluded that background of it is not all sun an spring, it has lot of issues for questioning, for now it seems like you say but i doubt that states wiil stay aside of it, not saying that turkey shoul follow the steps of china and india who banned all crypto currencies but some regulation has to be applied which will provide that economy activity of that procces is within state economy organism because how it looks now it is like modern variant of grey economy. That is how i look on that as total laicite person in that matter.
 

Tornadoss

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According to the IMF report, Turkey is among the countries that support citizens least financially during the pandemic.

Additional Spending and Forgone Revenue in Response to the COVID-19 Pandemic

(Percent of 2020 GDP)
map-SM21-v5.ashx


 
A

Akhtar

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Military spending has dropped a little last year:

20.1 billion $ in 2020
20.5 billion $ in 2019
19.4 billion $ in 2018
18.0 billion $ in 2017
18.2 billion $ in 2016
15.5 billion $ in 2015
17.8 billion $ in 2014
18.1 billion $ in 2013
17.6 billion $ in 2012

10.1 billion $ in 2000


I calculated using official numbers, SIPRI has different figures. Sipri says the drop in 2020 was much higher - down to 17.5 billion $:


I don't know how much local systems compared to imports contribute to this.
 
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Saithan

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Creating jobs, and such is a good move. Though I have my reservation to how this incentive is constructed.


State guarenteed passage on the bridges, and would pay the difference if no one passed through, so Turkey is going to be paying money when the bridges are empty and no one passes.
 

Ryder

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According to the IMF report, Turkey is among the countries that support citizens least financially during the pandemic.

Additional Spending and Forgone Revenue in Response to the COVID-19 Pandemic

(Percent of 2020 GDP)
map-SM21-v5.ashx



Unfortunately when they announced the lockdown it was basically a middle finger to everybody in the country.

You are on your own. We cant do anything about it. Akp is really doing everything it can to say to the people dont vote for me.
 

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