Turkish Economy & Updates

Nilgiri

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Erdogan should really let the economy be controlled by those who know what tf they are doing
I mean just why, just WHY!!
Thx to this, the lira posted significant losses today


<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Erdogan sacks three people from the Central Bank’s monetary policy committee, including Semih Tumen who was rumoured for the governorship</p>&mdash; Ragıp Soylu (@ragipsoylu) <a href=" ">October 13, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Why does your copy paste from twitter always have all this other code around it each time lol. I have noticed it only happens with your posts.
 

Lool

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Why does your copy paste from twitter always have all this other code around it each time lol. I have noticed it only happens with your posts.
Trust me even I dont know lool
Probably iam doing something wrong while Iam posting the news though😅
 

Nilgiri

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Trust me even I dont know lool
Probably iam doing something wrong while Iam posting the news though😅

From twitter it should be enough to just copy paste from the bar:

i.e the top left thingy... select copy paste etc...

twitterpaste.jpg
 

Anastasius

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There's no way its not intentional anymore.

Either its done on purpose or people around him influence him to make these decisions in their best interests (to bet against the Lira and make quick profit).
Yeah, I used to think it was just Erdogan being stupid and firing people because they were going against his ideas but the consistency with which people are getting fired JUST as the lira is showing SOME promise of stability and recovery, it's way too suspicious.
 

Saithan

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Change of duty at the Central Bank​

According to the Presidency's decision published in the Official Gazette, a task change was made in the Central Bank.​

14 October 2021 00:10Updated: October 14, 2021 03:33

Change of duty at the Central Bank

Hours have passed since President Tayyip Erdoğan's remarkable meeting with the Central Bank of the Republic of Turkey (CBRT) Chairman Şahap Kavcıoğlu, two vice presidents and a Monetary Policy Committee member were dismissed from the CBRT.

According to the decision published in the Official Gazette, CBRT Vice Presidents Semih Tumen, Uğur Namık Küçük and Monetary Policy Committee Member Abdullah Yavaş were dismissed. While Taha Çakmak was appointed as the Vice President, Yusuf Tuna was appointed as the Monetary Policy Committee Member.

After the appointment decision, the day started at 9.5 USD/TL and saw a new historical peak with 9.17!
After meeting with Erdoğan and Central Bank President Şahap Kavcıoğlu, it was stated in the news on the subject in Bloomberg that the dismissal of a Monetary Policy Committee member was discussed.

The Central Bank surprisingly cut the policy rate by 100 basis points to 18 percent at its meeting last month.
image_750x_6167533e156b5.jpg

REUTERS' KAVCIOĞLU CLAIM​

Last week, Reuters claimed that Erdogan had come to the point of losing confidence in Kavcıoğlu, whom he appointed seven months ago, and that his communication had decreased significantly in recent weeks, and gave the message that Kavcıoğlu would be sacked.

According to sources who did not want to be named, it was claimed that Erdogan was disappointed that the rate cuts he had expected before could not be made until last month.

REUTERS' NAME REMOVED​

In the news titled "Erdogan is getting colder from the last CBRT President" in Reuters, it was stated that there have been speculations by some analysts and market participants in the market in recent weeks that Semih Tümen, who was appointed as the CBRT Deputy Chairman, could replace Kavcıoğlu.
image_750x_61675d1078098.jpg

Starting to work as an economist in the General Directorate of Research and Monetary Policy in 2011, Tümen served as the Assistant General Manager of Research and Monetary Policy between 2015-2016; Between 2016 and 2018, he served as the General Director of Structural Economic Research.

Tumen, who started to work at a university in 2018, was appointed as the Vice President of the Central Bank on May 5, 2021.

Tumen has a master's degree in Economics and Mathematical Economics from the London School of Economics and the University of Chicago; He completed his PhD in Economics from the University of Chicago.

Related news: Signatures of dismissed Central Bank vice-presidents were placed on banknotes 15 days ago

_____________________________________________________

It's on purpose. Keeping the TL weak enough to create lucrative cheap labour force and place for investment for EU.

Another aspect is with the past 20 years they've already got a big base of people to work in different places of importance and they are keeping everything suppressed enough to implement all the changes they need. People who are unsatisfied will either go elsewhere or suffer long enough to lose hope.

If AKP and RTE lose next election the next government will have to implement 1980 style clean up to even see the bottom of the corruption and AKP aligned peoples reach.
 
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UkroTurk

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They replaced wrong person, Erdoğan should have dismissed himself.

İn order to shadow USD problem, suddenly we started anti-terror operations in Tel-Abad where is so far from Syrian Kurdistan. Yes Guys if we have balls , we should enter Syrian Kurdistan. We all have to get use this new country name!

EUR 10.60 , USD 9.18
1634193142703.png
 
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Indos

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Maybe Turkey want to get lesson from Indonesia. After we were struck with Asian Financial Crisis in which the hardest blow was in 1997 until middle of 1998 (Soeharto resign and Habibie economic formula (+the help of Allah) bring Rupiah to stability and much higher value compared to when Rupiah fall down from 2.500 per USD into 18.000 per USD in 2018), Indonesian political establishment made many reforms in the financial sector ( They also do other reform in other sectors like about state owned enterprises, military role, Anti Corruption Body, free press, etc)

Some of of the main commitments in the financial sector that I want to post are :

1. Bring down debt to GDP ratio into lower level (before Pandemic, our debt to GDP ratio is 30 %, now 40 %)
2. Discipline in maintaining deficit in Gov budget not more than 3 % of GDP. (Due to Pandemic, the cap is raised into around 6 %, but it will be decreased gradually and reach 3 % level in 2023)
3. Separation of Central Bank with Administration. Central Bank should be given freedom in doing monetary policy and inflation control.
 
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UkroTurk

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Maybe Turkey want to get lesson from Indonesia. After we were struck with Asian Financial Crisis in which the hardest blow was in 1997 until middle of 1998 (Soeharto resign and Habibie economic formula (+the help of Allah) bring Rupiah to stability and much higher value compared to when Rupiah fall down from 2.500 per USD into 18.000 per USD in 2018).

Some of of the main commitments that I want to post are :

1. Bring down debt to GDP ratio into lower level (before Pandemic, our debt to GDP ratio is 30 %, now 40 %)
2. Discipline in maintaining deficit in Gov budget not more than 3 % of GDP. (Due to Pandemic, the cap is raised into around 6 %, but it will be decreased gradually and reach 3 % level in 2023)
3. Separation of Central Bank with Administration. Central Bank should be given freedom in doing monetary policy and inflation control.
Turkish opposition have been shouting it for years. Saying this advice is called being HDP-LGTB supporter.



"Some suckers think that the economy is bad because the dollar is rising. economy is very good. We are exporting."

The current president owes his throne to Turkish Budget which reigns as sultan.
 
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Anastasius

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Turkish opposition have been shouting it for years. Saying this advice is called being HDP-LGTB supporter.



"Some suckers think that the economy is bad because the dollar is rising. economy is very good. We are exporting."

The current president owes his throne to Turkish Budget which reigns as sultan.
I don't get the exports defense. More exports is technically good but Turkey is exporting more because everything is so cheap not because the country is actually manufacturing much better quality products. That's even worse than low exports because it means that if the lira starts rising but the quality does not drastically improve, then investors will quickly move their money elsewhere even cheaper or higher quality and export numbers will drop again.
 

Agha Sher

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I don't get the exports defense. More exports is technically good but Turkey is exporting more because everything is so cheap not because the country is actually manufacturing much better quality products. That's even worse than low exports because it means that if the lira starts rising but the quality does not drastically improve, then investors will quickly move their money elsewhere even cheaper or higher quality and export numbers will drop again.

The logic here is that a weak lira will increase Turkey's competitiveness in manufacturing. Foreign companies will see this and start investing more in Turkey. Their investments will bring new technologies and methods to the Turkish manufacturing sector, which in turn will increase Turkey's overall productivity. In the long-run, even as the lira recovers, this increased productivity will compensate for that increase and Turkey will remain an export-based economy.
 

HTurk

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The logic here is that a weak lira will increase Turkey's competitiveness in manufacturing. Foreign companies will see this and start investing more in Turkey. Their investments will bring new technologies and methods to the Turkish manufacturing sector, which in turn will increase Turkey's overall productivity. In the long-run, even as the lira recovers, this increased productivity will compensate for that increase and Turkey will remain an export-based economy.
Perfectly explained. ✔
 

Agha Sher

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Our not- so-skinny prime minister in 80s and 90s, Turgut Ozal, would rave this idea to grow with a weaker currency, and a bit of inflation as a side dish. Decades after we still discuss productivity and growth through weaker TL, but we are still dependant on energy, raw material, intermidiate goods, and machinery. More export, unfortunately, also means more import. We are simply increasing the trade volume…

You have a valid point. It should be noted however that currently exports are increasing faster than imports, meaning that as volume increases the gap closes between the two. Also a weak lira makes some imported intermediate goods prohibitively expensive, forcing Turkish manufacturers to look for local solutions (if not already present, there is a even stronger incentive to develop local sub-components). By this a greater fraction of the value chain of Turkish goods will be from Turkey (reducing imports and boosting exports even more).
 

Indos

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You have a valid point. It should be noted however that currently exports are increasing faster than imports, meaning that as volume increases the gap closes between the two. Also a weak lira makes some imported intermediate goods prohibitively expensive, forcing Turkish manufacturers to look for local solutions (if not already present, there is a even stronger incentive to develop local sub-components). By this a greater fraction of the value chain of Turkish goods will be from Turkey (reducing imports and boosting exports even more).

Weak LIRA also means greater debts both for government and private sector { who has foreign debt}
 

Indos

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Erdogan also doesnt like weak Lira, his main focus only lower interest rate


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Kucuk was also opposed to the contentious policy of selling off the bank’s foreign currency reserves in a doomed bid to prop up the lira, the banker added. The policy began in early 2019 and continued until the end of last year.


 

Fighter_35

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I don't get the exports defense. More exports is technically good but Turkey is exporting more because everything is so cheap not because the country is actually manufacturing much better quality products. That's even worse than low exports because it means that if the lira starts rising but the quality does not drastically improve, then investors will quickly move their money elsewhere even cheaper or higher quality and export numbers will drop again.
Exactly, that is why export figures are not be a measure for a country whose currency loses its value 30-35 percent each year!!

And beside that, your products lose its value interns of usd. Which is not a good thing since you do not create this cost decrease by improving your standarts or improving production methods but low value manpower!!
 

Fighter_35

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Perfectly explained. ✔
Wow , another akpian from abroad loving tl to be weak as much as possible!!
Currency value decrease does not bring any advantage to any country!! How much value tl lost in the last 10 years?? From 1,65 to 9.20 almost 5.5 times lost its value!! Your export increased that much ?? nope, it just increased 50 percent in the last 10 years!! Any explanation for this??
 

HTurk

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Our not- so-skinny prime minister in 80s and 90s, Turgut Ozal, would rave this idea to grow with a weaker currency, and a bit of inflation as a side dish. Decades after we still discuss productivity and growth through weaker TL, but we are still dependant on energy, raw material, intermidiate goods, and machinery. More export, unfortunately, also means more import. We are simply increasing the trade volume…
Who says that Turkey's productivity hasn't grown? Please provide a source.
 

Fighter_35

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Ever heard of a country named China?
Could you compare currency graphs of both countries?? Let's see what china did ,what we did. Also send export graphs too if you defend weak lira as a better case for exports!!
I already proved by giving you numbers that it is not a good thing!!
Could you also do that?? Let's compare , come on send the figures for China!!

And speaking from abroad is very easy and very good for you when tl lose its value!!
 

Indos

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Could you compare currency graphs of both countries?? Let's see what china did ,what we did. Also send export graphs too if you defend weak lira as a better case for exports!!
I already proved by giving you numbers that it is not a good thing!!
Could you also do that?? Let's compare , come on send the figures for China!!

And speaking from abroad is very easy and very good for you when tl lose its value!!

Dont forget trade deficit chards
 
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