Turkish Banks Plan Emergency Meeting As Erdogan Vows To Retaliate To US Sanctions

Update: Bloomberg reports that Turkish banks will hold an extraordinary meeting on Saturday with the Banking Regulation and Supervision Agency, known as BDDK in Turkish, according to four people with knowledge of the matter.

The regulator requested that banks study the impact of interest and exchange-rate shocks today, and findings to be discussed on Saturday; they’ll also discuss the liquidity situation, three of the people said.

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With the Lira at record lows amid its biggest single-day drop since Feb 2001's crisis (when groups owning bank, media and holding companies jointly notoriously precipitated the domestic financial crisis by stashing away the home deposits in their offshore branches), Erdogan has made it clear that he is not backing down... for now.

First, Turkey has signaled no desite for an IMF bailout (having seen what happened to Argentina after theirs, who can blame him).

“We have received no indication from the Turkish authorities that they are contemplating a request for financial assistance,” IMF spokesperson Randa Elnagar said in an emailed statement.

And additionally, the Foreign Ministry said in statement.

“Turkey will give the necessary response to every step taken against it, as it has previously up to today,"

For now, at least, the Lira is not getting any worse...

The worst day since Feb 2001's crisis...

Don't forget though, as Erdogan said earlier in the day, "they have dollars, we have god." Good luck buying a mocchachino with some 'gods'...

“This is a textbook currency crisis that’s morphing into a debt and liquidity crisis due to policy mistakes," said Win Thin, a strategist at Brown Brothers Harriman & Co. in New York.

“The way things are going, markets need to be prepared for a hard landing in the economy, corporate defaults on foreign currency debt, and possible bank failures.”

If Erdogan's comments above are true - then he has 3 options: 1) Hike rates (he said he wouldn't), 2) Enforce Capital Controls (he said he wouldn't), and 3) Confiscate Gold/Dollars.... (he never said he wouldn't)

Comments

LightBulb18 roadhazard Fri, 08/10/2018 - 15:53 Permalink

So basically, Turkish debt in dollars and euros became 25% more expensive today? I also got A feeling that we are about to see A ‘turkish spring’. I don’t think it will get much easier to criticize muslims for their many censored war crimes, because we still have the left to deal with, and the saudis, and maybe the Iranians have some clout although their economy doesn’t seem that important, nor is the Turkish economy either other than being big enough to cause A european bank run unless the problem is printed away. Remember back when we had real economies and big disasters had consequences? In G-d I trust.

In reply to by roadhazard

Winston Churchill Davilis Fri, 08/10/2018 - 15:15 Permalink

Nearly on a par with Iran for strategic importance.

I'm expecting a rabbit to be pulled out of the hat.Its been obvious for over a year now that

the SCO was merely keeping Turkey in NATO as a spoiler.The reality is Erdogan defected after the coup attempt.

Deploying any USN ships in the Black Sea from now on is going to be very risky, even if Erdogan doesn't eject

NATO forces at once, which I half expect this weekend.

In reply to by Davilis

TeethVillage88s Winston Churchill Fri, 08/10/2018 - 15:54 Permalink

- I apologize to ZH for being here a short time only, my English bad

- Israeli and Turkish PACs should be included in the discussion, as well as Democrats like Hillary, Washerman, and Neocons/Neoliberals

- Who owns USA & UK, $35.5 Trillion in foreign ownership in US Assets, I posit that Prince MBS owns most important Airport in the USA since before 911

- You all are ignorant peasants who can't recognize even a little intel or foreign words (speaking to myself here)

In reply to by Winston Churchill

TeethVillage88s roadhazard Fri, 08/10/2018 - 20:46 Permalink

Sorry I just drooped food on uncleaned carpet, ate it.  I'm living down not living up.  I'm not easy to explain, no matter what profilers tell you.  Sure, I can say the right things and sound like "Joe Normal" , but it is not French, not German, not Jewish, not European or even Latin American to do that.

- Humanism?  I guess that is complicated for lots of people

In reply to by roadhazard

TeethVillage88s Squid Viscous Fri, 08/10/2018 - 15:27 Permalink

Economic pressure, US & UK secrets in Turkey, Neocons, Neoliberals Economic Control in UK, USA, Money Centers, ... NATO & EU control & World Order Games, US Foreign Aid & Military Aid/Foreign Assistance, ... Economic Wars, Economic Blockades, Economic Sanctions against Individuals, ... CFR, Trilateral Commission, Rhodes, Tax-Free Foundations, Wealthy Interests, Corporatism, Plutocracy, Autocracy, Cover-Ups, Political Corruption, ...

- Signed TeethVillage, equal opportunity employer

In reply to by Squid Viscous

Al Huxley Fri, 08/10/2018 - 14:48 Permalink

Make no mistake - America has room for TWO friends, and TWO friends only.  Those slots are taken by our loyal allies - Israel, and Saudi Arabia.  All other treacherous foreigners will PAY for their past actions against us!! Our loyal military stands by, ready to punish our many enemies!!!

lnardozi Fri, 08/10/2018 - 14:48 Permalink

I'm going to retaliate - dude, if you could do that your currency wouldn't be crashing now, would it? You didn't piss off America, you pissed off America's Banker. You might as well have hit your penis with a maul.