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Turkish lira collapses as Erdogan distracts with war games (Video)

The Duran Quick Take: Episode 636.

Via Zerohedge (https://www.zerohedge.com/markets/turkey-hit-bank-runs-currency-panic-locals-sell-their-cars-and-houses-buy-gold-while-lira)…

It has been an miserable five years for Turkish citizens who have seen their purchasing power slashed by more than half, and it’s only getting worse.

The Turkish lira has cratered against the dollar and most developed currencies, plunging from 3 TRY per dollar, to a record low 7.37 last week after a brief and valiant attempt at imposing shadow capital control by Erdogan (who is now de facto head of the Turkish central bankfailed miserably at the end of July, and not even a draconian hike in overnight funding rates above 1000%  last week (to crush the shorts) was able to prevent a plunge in the Lira to new all time lows.

As their currency implodes (in a nation that is becoming increasingly more “banana” with each passing day as Erdogan solidifies his takeover of every government institution, in the process turning off any potential foreign investors) Turks are discouraged from material purchases of dollars to hedge the collapse in their native currency due to some of the strictest capital controls on the planet, which has left them with just one option.

As Reuters reports, Hasan Ayhan followed his wife’s instructions last week and took their savings to buy gold at Istanbul’s Grand Bazaar as Turks scooped up bullion worth $7 billion in a just a fortnight while their currency went up in flames.


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Turkish lira collapses as Erdogan distracts with war games by The Duran

Turkish lira continues to collapse as Erdogan distracts with war games. The Duran Quick Take: Episode 636. Via Zerohedge (https://www.zerohedge.com/markets/turkey-hit-bank-runs-currency-panic-locals-sell-their-cars-and-houses-buy-gold-while-lira)… It has been an miserable five years for Turkish citizens who have seen their purchasing power slashed by more than half, and it’s only getting worse.

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jpthiran
jpthiran
August 19, 2020

…very intresting…amazing situation!…one more problem with consequences in Europe!…
but relax guys, Turkish air force is no match for Greek air force…so, you can sleep peacefuly… 🙂

Last edited 1 month ago by jpthiran
Theopilus
Theopilus
Reply to  jpthiran
August 19, 2020

Genuine interest. Why do you say that?

Haeul
Haeul
Reply to  Theopilus
August 19, 2020

Because he’s locked away hundreds of airmen due to alleged ties to he unsuccessful coup.

Theopilus
Theopilus
August 19, 2020

One of the easy ways to get at Erdugan is to short the Lira. It doesn’t look so bad against the Euro.

Daniel Martin
Daniel Martin
August 19, 2020

It seems that Erdogans delusions of grandeur has set both the Turkish lira and the Turkish nation in a downward spiral. Strapped on cash, with no allies and a lot of enemies both abroad and internally, engaged in three military adventures simultaneously and risking a direct military confrontation with Greece over territorial disputes, Erdogan will need nothing short of a miracle to survive this politically. He’s shown previously amazing skills to navigate him self out of crisis, but this time around he maybe just bit of a little to big chunk then he can chew.

Last edited 1 month ago by Daniel Martin
jpthiran
jpthiran
August 20, 2020

…Turkish airforce pilots were fired by Erdogan and now work form Turkish airlines…some were called back and they could even fit in there militay clothes…and today they are grand fathers….so, not very useful has jet piots!… 🙂

Tsigantes
Tsigantes
August 20, 2020

Sanctions and rating agency aggression is the unmentioned part of this….

jpthiran
jpthiran
Reply to  Tsigantes
August 20, 2020

each time Erdogan opens his mouth he scares someone and causes troubles, and the Turkish lira fall accordingly … political problems don’t mix well with business … 😉

Last edited 1 month ago by jpthiran

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