Saturday 9th July 2022
The BRSA made a decision and announced that companies with more than 15 million foreign currency in their safes cannot use the bank’s loans.
This news brought the dollar from 17,300 to 16,500 lire. On Monday, in the stock market of many companies, especially bank stocks, impact fall it happened.
The stock market is down today. Foreign investors traded on the stock exchange as if they were fleeing the plague.
It made an estimated revenue of $ 1 billion. 1 billion dollars Don’t say it’s too much, it’s a lot of money for the Turkish market now. Why to Turkey 1 cent It does not even enter.
All opposites are afraid of non-economic foreign decisions and run away.
While all of this was happening, the BRSA relaxed in this decision yesterday. However, before this decision was made, we saw the dollar once again break above the 17,300 level.
Now I ask: Why did you make this decision?
Was the stone you threw worth the birds you scared?
Of course it wasn’t worth it, but Turkey is now ruled by irrational economic decisions.
To date, 3 decisions have been made to lower the dollar. One of these is the secure currency deposit account. About 1 trillion lire went into this account in 6 months. Its equivalent is $ 65 billion. In other words, the Turkish lira has been indexed to the dollar.
Imagine a country indexing the return of its currency at the exchange rate.
A decision that does not fit the rules of irrational economics.
Just like the absurd thesis that interest causes inflation.
A whopping $ 65 billion risk was placed on the back of the Treasury today.
The dollar rises again. So, with such a great risk, the dollar is right 6 months they were able to hold up.
We come to the second indirect intervention, it is called GES it happened. In other words, income-indexed bonds of public institutions. It is manufactured not to say interest. cover.
This GES did not cause even a cent drop in the dollar.
Finally, the forced sale of the company currency. Its effect is lonely 50 cents and it came the same day he came. So 17,300 lire.
We come to the crucial question:
What kind of weapon will attract political will and the economic administration under his command in a possible dollar hike from now on?
What do you have left?
He has only one weapon left. inflation-linked bond. They were about to issue this bond, but it was shelved by the uprising of the banks. Because then no one keeps the deposits in the bank and puts the money into this bond.
However, the AKP, which wants to breathe a sigh of relief until the election, will eventually have to draw this weapon. Because after this hour, even if he raises interest rates by 50 points, he won’t make any more money.
So, will inflation-linked bonds lower the dollar?
For me does not fall. Even if she does, 1 lira falls and then continues: “Where were we?” Because trust in TURKSTAT, the state’s official measurement institute, has been shaken. Who trusts the inflation data of an institution whose president and executives change every three months and whose figures are discussed around the world, who buys a bond?
Now a financial literacy question for you:
In light of these data and developments, what do you think they can do to bring the dollar down?
Your answer https://twitter.com/remzi_ozdemirI’m waiting