Turkish Stocks, Lira Tumble After Erdogan Comments Prompt Capital Control Concerns

Well, that was not supposed to happen...

Turkish stocks are down most in a month and the Lira is tumbling from its dead cat bounce after Turkey’s President Recep Tayyip Erdogan last night called on Turkish citizens to repatriate assets from abroad... prompting fears that this is pre-empting capital controls that he has previously promised would not occur.

Turkish stocks tumbled back to their lowest since June 2017... with the biggest weekly drop since Nov 2016 (US election)

“The market is coming to realize that the problems are structural and thus interest rate increases aren’t enough to stem the lira decline,” Burak Cetinceker, a fund manager at Strateji Portfoy in Istanbul, said by email.

“Add that elections factor, whose outcome still cannot be easily guessed; and you get a market that is all in jittery mode.”

And the bounce in Lira is fading fast for the second day, trimming the biggest weekly gain in nine months (after a desperate 300bps rate-hike)...

The lira’s slide on Thursday was due to “various speculations,” including one about a possible rating downgrade, but those losses are extending today following Erdogan's demands that Turks "teach a lesson" to foreigners trying to shake the Turkish economy.

“Let’s teach a lesson to those who are trying to shake the economy and stability through foreign currency,” Turkey’s President Recep Tayyip Erdogan says late Thursday as he calls on all Turkish citizens to bring assets from abroad and convert their FX deposits to lira, according to state-run Anadolu Agency.

Erdogan, speaking during a rally in southeastern Malatya ahead of parliamentary and presidential elections on June 24, calls on Turks to benefit from regulations easing tax on assets brought from abroad.

However, his comments have been construed as potentially signaling pre-emptive repatriation ahead of capital controls.

“The lira is not out of the woods,” analysts including Tatha Ghose at Commerzbank AG in London wrote in a note. “If the central bank were to skip a rate hike on June 7 simply because temporary calm happens to prevail at the time, that would be confirmation that, despite the assurances, the central bank’s ‘behind-the-curve’ style has not changed.”

As Bloomberg reports, data due Monday will show consumer-price increases quickened to 12.15 percent in May, according to the median estimate in a Bloomberg survey, approaching a 14-year high of 13 percent reached last year. While the central bank is said to be prepared to raise interest rates again if inflation picks up pace, analysts at Capital Economics in London say it will likely to stay on hold at the next meeting on June 7.

Comments

Quantify 1 Alabama Fri, 06/01/2018 - 08:12 Permalink

Has nothing to do with gold. Erdogan is a Islamic turd who wants to re-create a caliphate. Muslims truly believe they can, if you look at the history it explains a lot. Turkey's economy is just like other Islamic economies. They can't produce anything technically advanced, other than the weapons they try to imitate from western designs. And that is so they can advance the spread of Islam. Its a cult of conquest nothing more. Not a real religion. Erdogan own words describe the cult completely. "These descriptions are very ugly, it is offensive and an insult to our religion. There is no moderate or immoderate Islam. Islam is Islam and that’s it.".

In reply to by 1 Alabama

LiteBeeer gregga777 Fri, 06/01/2018 - 08:56 Permalink

All this is in hadith, sura and quran:

Messenger of Allah said:

  • Muhammad squatted to pee, because graves are filled with those who piss standing like the devil.
  • Lick your fingers after eating or let them licked by others, because the blessing put in the food by Allah may be in the grease left on your fingers.
  • Dhimmihood: let non-muslims pay the jizya to finance islam through robbing others.
  • Mut'a marriage: Have sex with a whore who pretends to be your wife for a temporary hour of time.
  • Burn images, photos and kill dogs, so that angels can enter your house.
  • It's necessary to shave your pubic hair.
  • Drink sewage water without concern, because water never gets dirty.
  • Dunk flies that fell into your food all in, because one wing that has the disease, the other has the cure.
  • Drink camel urine as a blessing.
  • Eat 7 Ajwa dates every morning so no poison can kill you all day.

You should join the islamic dawa, to spread true knowledge of islam to the unbelievers.

 

In reply to by gregga777

avenriv Quantify Fri, 06/01/2018 - 08:30 Permalink

do you want to say there were dutch, norvegian, belgian, russian, ukrainians divisions too ? or the fact the italians sent many divisions to fight with the nazies ? are they nazies ?

a nazi saved the USA, do you remember the moon landing ?

those were arabs, not iranians.

please try to read some history, but, please, one letter at a time.

but that doesn't say the actual guy you talk about will not be fried...

In reply to by Quantify

Quantify avenriv Fri, 06/01/2018 - 08:41 Permalink

Sure there were, but those were individuals (not an ideology) some of which were pressed into service. Islam is just like Nazism. It is a system of complete control over the population. Substitute Allah for Hitler and its almost the same. Only better Allah can never die. Islam even has its own justice system, link I provided describes it well.

http://www.slate.com/articles/news_and_politics/fighting_words/2007/10/defending_islamofascism.html

In reply to by avenriv

Fireman avenriv Fri, 06/01/2018 - 11:00 Permalink

The "moon landing"....you mean some poor gimps still "belieeeeeeeeeeeeeve"?

Fucking hopeless to say the least!

Apart from the obvious fact that flintstone technology now, as well as back in the day, has zero chance of getting there let alone "landing" and getting back to Earth (think Mad Mars Musk's Tesla for God's sake) Here's the NaSA scammers telling you to your face that it's all a $cam!

https://www.youtube.com/watch?v=IDBBUwdyz4I

In reply to by avenriv

AbbeBrel Fri, 06/01/2018 - 07:43 Permalink

I just checked and I still have a couple of 1 million Lira notes in my collection of expensive souvenirs. They are from passing through the Istanbul airport in 2004. Since then they dropped 6 zeros off the bills. TRL / 1 million = TRY

gwar5 Fri, 06/01/2018 - 07:53 Permalink

Saw it coming.

What does the prophet mohammed have to say about keeping your goat and camel net worth under government control? Is it even shariah compliant?

HorseBuggy Fri, 06/01/2018 - 08:11 Permalink

I went on several vacations to Turkey, the Turks that I met seem very normal, what is it about this Erdogan that they like? Do they secretly desire an Islamic dictator? What's he do positive for the average turk or for Turkey in general?