Urgent: The dollar is worth more than 11 pounds now!

Urgent: The dollar is worth more than 11 pounds now!


The Turkish lira appears to have taken the words of President Recep Tayyip Erdogan to take a new step in the path of a non-stop collapse, bringing the 11 levels within reach.

Traders and investors considered that Erdogan's statements yesterday, Wednesday, are nothing but confirmation that the Turkish Central Bank intends to make a new reduction during the next few hours, which may open a path to the levels of 14 lira / dollar .

The Turkish lira is going through difficult and difficult days, which makes talking about historically declining levels a mere narration, as it is recording a new low every day.

The Turkish Central Bank decided to cut the interest rate to 15% instead of 16%, and the Turkish lira is facing a decline of more than 4% from the time of the decision and has reached levels of 11 lira/dollar now.

The lira before the decision is issued

During today's trading, the Turkish lira approached the levels of 11 lira / dollar, as it plunged to a new all-time low at levels of 10.9667 lira dollars.

While the lira is trading during those moments at levels of 10.701 lira / dollar, a decline of 0.9%, which is also the lowest level ever.

Since the beginning of November alone, the Turkish lira has lost more than 15%, down from the closing of the first of November, at levels of 9.5325 lira / dollar.


And speaking of gold, which the Turks seem to be eating due to the unparalleled demand and the crazy jumps in the price of Turkish gold during the past few days, to hedge against the collapse of the lira.

While the report was being written, gold prices were recording gains of 3.7%, rising to an all-time high at 658.896 pounds / gram.

From the end of October until those moments, the price of a gram of Turkish gold rose by more than 110 pounds per gram, to jump from levels of 548.947 pounds to the current levels.

demon interest

Turkish President Recep Tayyip Erdogan said on Wednesday that he will continue his fight against interest rates to the end, as Erdogan sees interest as a demon affecting the economy.

Hours before the Turkish Central Bank meeting on the announcement of interest rates, Erdogan said that he will take the burden of interest rates off the people and urge companies to invest, employ and increase exports.

The Turkish president told lawmakers from his ruling party we will raise this interest rate whip off the backs of people, surely we cannot allow our people to be crushed by interest rates.

The Turkish president said: "I cannot stand .. and I will not stand in this path with those who defend interest rates."

display and package

He appeared to be trying to send a signal to reassure investors, as Turkish President Recep Tayyip Erdogan said on Wednesday that an offer from Spain's BP (LON: BP ) to buy the rest of Turkey's Granti Bank showed confidence in Turkey's economy.

Erdogan was speaking at a press conference alongside Spanish Prime Minister Pedro Sanchez, where he said: "The statements made by the Bank of Spain are a tangible sign of confidence in Turkey."

Erdogan's attempts to placate investors or citizens over the package of subsidies and cuts announced by the government on Monday were unsuccessful.

Turkish President Recep Tayyip Erdogan said on Monday that his country would eliminate some fixed charges in electricity bills to help consumers, adding that his government was already subsidizing some energy prices.

Turkish President Tayyip Erdogan
Turkish President Tayyip Erdogan

Erdogan said after a cabinet meeting in Ankara that the government would cancel a flat 2% fee on electricity bills that goes to fund the state broadcaster TRT and another 1% fee.

"With not disrupting corporate budgets in the energy sector or sacrificing our citizens, we will continue to tame this global energy crisis," he added.

expected reduction

The bank is expected to cut the interest rate to 15% from 16%, a Reuters poll found, although inflation remains near 20%.

According to the poll, this is mainly due to concerns about political interference in monetary policy, given President Recep Tayyip Erdogan's repeated calls for interest rate cuts and rapid changes in the leadership of the central bank.

It is expected that under pressure from the Turkish President, the Central Bank will continue to follow the same policy and may move to a new reduction in the next meeting.

HSBC Asset Management Turkey says: “Despite the lira's decline since early September, the central bank is likely to opt for another cut by focusing on the slowdown in commercial lending.

Credit rating agency Fitch sees Turkey's sudden big interest rate cut as another step in the wrong direction, while the agency expects another rate cut.

Analysts at Fitch agency say: "The easing of monetary measures was a premature step, and appears to have been politically motivated without leaving the central bank the margin required to protect the faltering lira."

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