Betting on turkish lira ?

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369

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#1
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People should have a look at turkish Lira as it seems it will follow soon the way of ruble which means backing its currency with gold.
There are some indicators that turkey is going this route and this would mean a massive increase of value of the turkish Lira
 
Reactions: Ridden3328
#5
csp dubai said:
Turkey thinks they will lower inflation with lowering interest rates.
they should get a noble in economy , for total ignorance
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question is if they want to lower inflation.you don't think turkish people doesn't know econemy 1:1 .
Turkey bought a lot of gold and also asked its citizen to sell their gold to them.
So am pretty sure they will go the route russia went.
Based on us agency stats turkey will do fine so it indirectly means they need to somehow strenghten their currency
 
#6
Who claims that?
Turkey will not follow Russia in backing TRY with gold. It is far too expensive and will make Turkish products and Turkish inbound toursim uncompetitive.

Turkey always had a devaluating currency and lives quite well with it. However, nobody in his right mind would use TRY as a "store of value".
 
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Reactions: deraty
#7
Big industry moved from western countries to turkey as the cost of energy is only 5 cents per kw .
They need a stable currency and there is a reason why turkey is buying such big amounts of gold.
Also stats from a US agency showed that turkey will be fine in 2025 which means they currency needs to be strong at that time
 
#8
how they buying big amounts of gold while in debt? Lots of foreign currency sold for fighting against lira's value lose. I think you confused with individuals' gold buy. Many people buying gold for protecting themselves from very high inflation.
 
Reactions: deraty and backpacker
#9
Ridden3328 said:
how they buying big amounts of gold while in debt? Lots of foreign currency sold for fighting against lira's value lose. I think you confused with individuals' gold buy. Many people buying gold for protecting themselves from very high inflation.
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selling worthless paper and buying physical assets.
How ?It doesn't take much to check that turkey was the biggest buyer in the past months and also bought a lot directly from their citizens.
 
#10
369 said:
selling worthless paper and buying physical assets.
How ?It doesn't take much to check that turkey was the biggest buyer in the past months and also bought a lot directly from their citizens.
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Read this and understand -> Turkish Central Bank sends gold to London - In need for FX?
Gold does not help much when the countries central bank/government acts like a kindergarden that reinvented the wheel.
 
Reactions: boomy
#11
seeking alpha
how many false claims have they made ?
I remember how they called one of my investments a scam where price dipped 90%.Today these people regret having sold as that exect "scam" company got a major
Anyways everyone is responsible for their investment.
I said buy the dip in ruble where everyone claimed ruble is dead where in reality ruble just started.Once the moscow exchange is established the ruble will skyrocket again.
Same with Lira.If you can't see what they are doing and need to belive articles from seeking alpha which is known for a missinformation platform everything based on gold than its your decission

Gold does not help much when the countries central bank/government acts like a kindergarden that reinvented the wheel.
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Turkish government is not dumb.They are scammers but not dumb

Also the comparsion turkey with venezuela is a joke.
Turkey will increase its power.There is a reason many big european companies are moving to turkey which is clearly not a broke country like venezuela
 
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#15
What you posted should indeed prevent a total collapse of the local currency and a default on the foreign debt obligations of the Turkish government. However, that does not mean that the external value of TRY will improve.
Read this -> Turkey halts lending to more FX-rich firms to boost lira and spot the problem.
 
#16
russia accepts now only Ruble for gas expect for china they will pay via yuan
europe is forced now to trade with turkey as russia is not selling to europe anymore only via turkey and turkey only accepts lira
 
#17
369 said:
russia accepts now only Ruble for gas expect for china they will pay via yuan
europe is forced now to trade with turkey as russia is not selling to europe anymore only via turkey and turkey only accepts lira
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So, what difference does it make for TRY?
The Europeans will have to buy TRY and than the Turks will have to buy RUB with these TRY.
There is a small net affect for Turkey. They will get fees and commission + some more "traffic" in their currency. However, that's not enough to boost TRY long-term.
 
Reactions: boomy
#19
boomy said:
That will make Turkey rich over short time.
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Maybe.
Look at the capacity of Turkstream and check the possibilities of distributing gas from Turkey to Central and Northern Europe -> very limited.
So, if the capacity were available the idea of Putin could -in theory- give Turkey a welcome source of income. But there is no pipeline capacity.
Should they now start building new pipelines it takes a few years to get things running. Meanwhile Europe will have found other sources of energy ....
 
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