Turkish Lira Crashes To Record Low After Erdogan Says "Rates To Go Down"

Confirming that the president of Turkey may not be the most erudite central banker - despite the powers he decreed upon himself on Tuesday which grant him the power to appoint the next Turkish central bank head - moments ago Erdogan reportedly said the following two mutually contradictory statements:

  • ERDOGAN: WE WILL SEE THE DOLLAR DEPRECIATING VS LIRA `SOON': HT

So far so good: after all, with the Turkish Lira plunging to all time lows earlier, the last thing Turkey needs is FX capital controls to contain what is now runaway inflation, and a blowing out current account deficit.

And yet, in the very next soundbite, Erdogan said something which makes no sense in light of the above: he vowed to lower rates, precisely as the market has been worried he would, to "boost" the economy which is already in a state of near collapse as a result of soaring prices.

  • ERDOGAN SAYS INTEREST RATES TO GO DOWN IN UPCOMING PERIOD: AHBR

Alas, it seems that Erdogan does not comprehend that these two are mutually exclusive, and the result is that the Turkish Lira has stumbled once more, sliding to 4.80 for the first time ever, and a new all time low as the market start to give up on what is clearly the next EM basket case, albeit one with huge strategic importance for the rest of the market.

Comments

Looney Colonel Klinks Ghost Wed, 07/11/2018 - 10:30 Permalink

 

If the Globalists can’t overthrow you, like Gaddafi, they will smother your country financially.

I’m not Erdogan’s fan, but Turkey’s economy is in a much better shape than France’s or Italy’s.

Yet, a few taps on the SELL button easily crash the Lira.

BTW… Erdogan’s antics are not as bad as Duterte’s, but the Philippines Peso seems to be OK.  ;-)

Looney

In reply to by Colonel Klinks Ghost

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dark fiber Wed, 07/11/2018 - 10:34 Permalink

Next step capital controls for Turkey, which means the economy will tank even further, so Erdo will need to find an easy enemy to go to war with. 

Greece is fucked.

Thordoom Wed, 07/11/2018 - 10:44 Permalink

If the US think this is going to destroy Turks they are crazy. Turks will launch attack on Greece take over the whole Cyprus andall the freaking islands knowing MR fuckign Stoltenberg will reiterated that it is not an issue for NATO. Turks won't lay down and spread their legs to get fucked by CIA. They know what is up. I do not like Turks but i can not deny that they put their nation priority over anybody.

Money_for_Nothing Wed, 07/11/2018 - 10:45 Permalink

Turkey needs gold. They can try for oil and natural gas but EU, US are unlikely to help and Russian would have no interest. Russia probably has already negotiated a pull-out of Turkey by the US. Turkey invades Iran to restore real islam? (maybe pick up an oilfield or too also)

AbbeBrel Wed, 07/11/2018 - 11:09 Permalink

Wikipedia: "The Guinness Book of Records ranked the Turkish lira as the world's least valuable currency in 1995 and 1996, and again from 1999 to 2004. The Turkish lira had slid in value so far that one original gold lira coin could be sold for 154,400,000 Turkish lira before the 2005 revaluation." If you don't succeed at first, then TRY TRY again.

Bunga Bunga Wed, 07/11/2018 - 12:31 Permalink

So what? Erdocon has ultimate power and he can introduce capital controls, price controls, rent controls and control the media. The market rates don't matter anymore, he will praise his bogus statistics to his people. 

Omega_Man Wed, 07/11/2018 - 17:09 Permalink

I hope he can succeed... all nations should control their own money, not jews...

 

he can set rates, ban an mericans from trading lira and ban the dollar, and shekel.