Lira Crash?

#1
I would like your opinion on the current state of the Turkish Lira.
Although I know nobody has a crystal ball, do you think it will completely crash?
 

Akasya

Postless Pointer
#3
6.38 , how to define a crash , one third of value in under a year ?

Hard to stop a slow motion avalanche .

Will the election help or hinder .

Steve
 

Camden

Senior Member
#4
I can't see Erdogan allowing it to fail, (especially with election) even though he doesn't like interest rates he will have to increase as the risk of hyperinflation. He will be pressed by Turkish business to intervene hard ( though he is a maverick and blames outside influences ) but Turkish business has a lot of foreign debt so he must. After the elections, if he wins he has lots of problems sustaining Turkish Growth needed to keep his policies of mega-projects on track. The last resort would be a devaluation by floating lira to find own value (bad), that's why the firm I work for that has interests in Turkey only do transactions in hard currency.
 
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