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Turkish lira falls 15% after bank governor sacked

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Central Bank Governor Naci Agbal was fired on Saturday for mainly not following Erdoganomics, and has been replaced with Sahap Kavcioglu who many are predicting will do a major interest rate cut soon and in turn destabilize the Turkish economy.
 
Considering the former *stabilization* consisted of spending 130 billion dollars in one go an hiking the interest rate throught the roof...

The condition of the Turkish economy these past 6 months was not sustainable even in the short term thus what they are doing now is because they are running out of money not because of wishy washiness.

Turkey has been leeking money like a sieve and combined with Erdo pissing off every major trade and diplomatic partner with his warmongering attitude no ammount of proping up by the Emirates or Azerbaijan can make up for it.

I fear Turkey is heading for a major crash and this time may be the one that none will step in.
 
Considering the former *stabilization* consisted of spending 130 billion dollars in one go an hiking the interest rate throught the roof...

The condition of the Turkish economy these past 6 months was not sustainable even in the short term thus what they are doing now is because they are running out of money not because of wishy washiness.

Turkey has been leeking money like a sieve and combined with Erdo pissing off every major trade and diplomatic partner with his warmongering attitude no ammount of proping up by the Emirates or Azerbaijan can make up for it.

I fear Turkey is heading for a major crash and this time may be the one that none will step in.
The recent fired central bank governor was in a damned if you do or damned if you don't position when it came to the interest rate. So does Greece have much trade with Turkey or is it really small?
 
We got...

Well in absolute terms I guess it is not much but we really do have much trade with Turkey considering the size of out respective economies, Greece being beholden to the EU in general and increasingly hostile relations.

Much of said trade was in the tourism industry, which covid and Erdos insane hostility against Greece leaking down to his many cultists brought to a screetching halt.

Turkey much devalued economy make it a very attractive choice either of vacation or crossborder shopping but it is not worth the hassle Turkish officials have started putting Greek tourists through the last few years or being stabbed in the streets by Gray Wolf nutsos
 
Erdoğan's macroeconomic strangeness aside, Turkey is in too much trouble from everything else, most of which isn't in even under Turkey's control. It's a country with where food expenses are a major fraction of consumption, hit by an intense drought and spiking global food prices. It's a significant importer of energy and oil products, and the oil price is going up. It's a major tourism service exporter in a world where that whole industry just stopped. It's hugely indebted in foreign currency when its major exports destination, the EU, is itself going in a depression and hence has less demand for Turkish products.

In other words, there's a happy fun time in Turkey's imminent future regardless of what it does, though the unpredictability of the currency will probably make it worse.
 
Turkey has been leeking money like a sieve and combined with Erdo pissing off every major trade and diplomatic partner with his warmongering attitude no ammount of proping up by the Emirates or Azerbaijan can make up for it.

That's partially why they are "leaking like a sieve." Jumping from one action to another in hope of some clout and some pay off. Like in Syria and Libya and so on. Getting constantly cock blocked by Russia and others like Egypt, USA, etc.

Edit

As far as Turkey not doing economically well that's been well known for a long time. But it has been especially obvious when Turkish PR arm started posting fantasy tales about it's economy, economic and social development and military acquisitions.
 
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That's partially why they are "leaking like a sieve." Jumping from one action to another in hope of some clout and some pay off. Like in Syria and Libya and so on. Getting constantly cock blocked by Russia and others like Egypt, USA, etc.

Depends on what kind of pay off Erdogan and Co consider vital and worth paying or even facing financial collapse over?

In their mind money is temporary, properly cleansed and colonized clay is eternal.

What does it matter if they sanctioned compared with getting a firm foot in the door in all the places they got irons in the fire?

Unofficial clay in North Syria, the right to intervene at will in Iraq, humilating Armenia, making Lybia a tributary state, gaining a say on what happens in half the Aegean or East Med.

Frankly the only ones that got the better of Turkey so far are the Israelis and that is because they give no fucks and are willing and able to sink or shoot down anything Turkey sends their way.
 
What exactly did they get in Libya ? They have Tripoli. But who gives a fuck about Tripoli ? When economical parts of Libya are not in their hands and wont be since Ze Russian and Egyptians. told then to fuck off. Which they done after months of chest pumping on how Sirte would be taken, etc.

Syria ? A small piece of land were they are stock protecting goat fuckers with Turkish lives.

Armenia, Okay. But at the same time they gave Azerbaijan balls to Russia. Along with Armenia balls also. You could also say they won a PR victory there. But winning a PR victory in the eyes of plebs doesn't mean much of anything.
 
They *Enlarged the country and gained glory and prestige*

That may not mean much in concrete terms but it means a whole lot for politicos going all in in nationalism since they skullfucked the economy.

Hey they may not have bread for their voters but they will feed them glory and victory in the battlefield!
 
What exactly did they get in Libya ? They have Tripoli. But who gives a fuck about Tripoli ? When economical parts of Libya are not in their hands and wont be since Ze Russian and Egyptians. told then to fuck off. Which they done after months of chest pumping on how Sirte would be taken, etc.

Syria ? A small piece of land were they are stock protecting goat fuckers with Turkish lives.

Armenia, Okay. But at the same time they gave Azerbaijan balls to Russia. Along with Armenia balls also. You could also say they won a PR victory there. But winning a PR victory in the eyes of plebs doesn't mean much of anything.
Please do not refer to people living in north western Syria or the Middle East as goat fuckers.
 
Their economy was always fucked though. Turkey overall is less developed then one might think. Which is really, really surprising. And for the most part I think it's due to piss poor education. At least statistically literacy rate has improved post 80's. But a Dutch based study what I read a decade ago questioned it. Supposedly, the rural populace was still as fairly illiterate back then, a decade ago.


Yes, Turkey manufactures variety of goods military and civilian which all started in the 70's more or less. Most of the R&D wasn't done in Turkey and still isn't. Labor besides low level labor until really 2000's wasn't for the most part Turkish. Civilian goods sector partially been eroded away by due to moving to other countries. Medical sectary had a boom due to medical tourism. But again from what i heard and partially saw myself a lot of the staff it seems aren't actually Turkish. And from the conversation I had with a Iraqi schooled Soviet ophthalmologist when I was in Turkey with my then GF to have her eyes done. There was a worry according to him in a squeeze in taxes on private clinics. Though from a quick search that sector is still growing.

Please do not refer to people living in north western Syria or the Middle East as goat fuckers.


(y)
 
Turkey has to support GNA (Tripoli) in Libya because Tripoli is the signatory to their maritime boundary treaty in Nov 2019, followed by oil and gas rights to Libyan resources in their exclusive economic zone of the Mediterranean. Meanwhile, in early 2020, Greece and Cyprus signed an agreement for the construction of the EastMed pipeline (10km³/a) from the Levantine basin to Greece, which although isn't too big, extinguishes Turkey's ambition to be monopolistic gas transiteer to southern Europe. Worse for Turkey, in late 2020, Greece and Egypt signed their own agreement of dividing their EEZs in the Mediterranean, and corresponding the oil and gas drilling rights.

One can evaluate Erdoğan's flailing and his position Turkey's EEZ share of the Mediterranean is unfairly boxed in by Greece and its myriad islands near Turkish borders any which way, but let's not pretend this is merely about clay, rather than something that has geopolitical significance and large sums of money on the line. Because compared to gas fields and control over gas transit to the EU... well, conflicts have been started for dumber reasons than that. :)
 
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