Kibkom North Cyprus Forum

Just looked and its 610 tl to the pound . The turkish economy must be at breaking point. Their companies have a lot of foreing currency debt . Everytime the lira devalues it becomes harder for them to pay . If this keeps up theres going to be hyperinflation.

Locals here are effected to as their salary isnt keeping up with inflation .

The central bank needs an immediate significant rate hike

Yes and those of us who invested sterling and converted into TL accounts are losing money hand over fist every single day. Was a bit of a joke to start off, but we're not laughing now. Mind you holiday makers must think its Christmas Day every day.

"Just looked and its 610Tl to the pound"

Now @ £1 = 6.16499 @ 15:35 TRNC Time
https://www.xe.com/currencyconverter/co ... =GBP&To=TR

£1 = 6.0920 @ Limasol Bank @ 14:27
http://english.limasolbank.com.tr/

Could become £1 = 6.500 very quickly?

Reyntj wrote:Just looked and its 610 tl to the pound . The turkish economy must be at breaking point. Their companies have a lot of foreing currency debt . Everytime the lira devalues it becomes harder for them to pay . If this keeps up theres going to be hyperinflation.

Locals here are effected to as their salary isnt keeping up with inflation .

The central bank needs an immediate significant rate hike

You are right to say the Central Bank needs to tighten monetary policy to deal with (among other things) inflation and it would love to. However the current lira sell-off is due to Erdogan's comments in front of the 24th June election. The Central Bank may well lose it's independence and rates may well be cut.

I was speaking to one or two market owners today in town and things are getting tough for them. They fully support Erdogan (having got their info from Turkish media) - but can't see an easy way through the next year. The friendship rules of politics & religion kicked in and I simply wished them well.

If Erdogan doesn't say something, or get a minister to say something, to steady the markets the lira will remain under intense pressure over the next month. If he then goes on to cut interest rates - you are looking at continued capital flight & possible controls.

Good or bad time to getting together our move?

Maybe we should put our plans on hold for a while.

Thoughts please?

When banks give a deposit rate of 8% up to 11%. Where would they put that money to get an even higher rate to cover giving those rates. About 30 years ago when there were very few banks 2/4 went to the wall. I have never trusted banks here.
a.

Im not sure what your saying rocking ? Banks lend out money at a hgher rate than they pay on savings thats pretty much common knowledge . Thats fundamentally how they make money .

Wha are you saying i dont understand ?

Unfortunately, the central bank are not free to make the decisions that would positively fight inflation and halt the nose dive in the Lira. There is only one man to blame for this situation. Such arrogance to go against all economic convention. He will bankrupt his own country rather than admit he might be wrong. Until the sycophants wake up and smell the coffee, Turkey is doomed.

He will bankrupt his own country rather than admit he might be wrong. Until the sycophants wake up and smell the coffee, Turkey is doomed


I am definitely getting cold feet!!!

If you are financially secure and have an income/resources in a stable currency (i.e. - one other than TL) then I can't see why any of the aforementioned issues need concern you.

On the other hand, if you are intending to rely on the TRNC economy to provide your livelihood, then DON'T !!

Thankyou for your reassurance Keith.

Basic answer is I guess, keep as much money as you can in a stable economy and just have enough here in TL for your basic needs. Plus, keep praying that the ATM's that dispense Euro, Dollar and Sterling continue to work. If they go belly up then your doomed Mr Mainwaring, doomed!!

sophie wrote:Basic answer is I guess, keep as much money as you can in a stable economy and just have enough here in TL for your basic needs. Plus, keep praying that the ATM's that dispense Euro, Dollar and Sterling continue to work. If they go belly up then your doomed Mr Mainwaring, doomed!!

Another way to circumvent the ATM issue is the Revolut Card mentioned previously on the forum - you can top it up online with your 'Home' currency from any Bank ın any Country - Sterling or Euros or USD, and pay in any currency that is required, and get a better exchange rate than you will get at the local exchange shops. I used mine at İlleli on Sunday and got 6.1581 TL to 1 GBP, and then used it in Larnaca to pay for parking and a coffee...

It means that you don't have the hassle of changing hundreds of pounds into TL every month, and a slimmer wallet

Iive price 6.24 it really is like watching a car crash in slow motion . My mxed grill kebab arrived last night packet service normal price 48 tl . New price 65 tl !

Keithcaley wrote: Another way to circumvent the ATM issue is the Revolut Card mentioned previously on the forum.....

I remember the previous discussion; thought it was quite interesting. I've now had a look at their website and a couple of YouTube videos, and having noticed the travel insurance facility, am now even more interested....
BUT - as far as I can see, although a physical card can be obtained, a smart phone is still a necessity - and while I have an ordinary mobile ('cell') phone, I prefer not to have any device "smarter" than me...
SO - is it not possible to effect transfers from your bank to your Revolut card via PC (as in online banking)?

https://community.revolut.com/t/revolut ... hone/11440

You can transfer funds in to your revolut without a smartphone - once you have set up a revolut that does require a smartphone and know your revolut account details - the online payment from your bank is just like making a payment to anyone, so does not require you to do anything with the revolut app. Like if you make an online payment to me (pm me for the details of my account ) , then I do not need to do anything to receive such. There may be a charge depending on what type of transfer you do from your online bank to revolut and what you will not be able to do is pay money in to the revolut account using a debit card, for that you do need the app, but if you have the account set up and just want to do an online transfer from your bank to your revolut account his can be done as I understand it.

Some people have used an andriod emulator on their PC as well , to set up and use their revolut account. This does still require a mobile able to receive sms texts but but not a smart phone, all the smart stuff is done on the PC pretending to be an andriod device.

But really revolut is designed to work with a smartphone and the associated app.

erol wrote:https://community.revolut.com/t/revolut ... hone/11440
....Some people have used an andriod emulator on their PC as well , to set up and use their revolut account....
But really revolut is designed to work with a smartphone and the associated app.

Thanks for that, Erol - I do have an Android emulator (BlueStacks), but my OH has an Android tablet, so I might use that.

"Live price 6.24Tl - My mixed grill kebab arrived last night packet service normal price 48Tl .
New price 65Tl!!

What will it cost tomorrow?
£1 = 6.44020Tl @ 01:20

Went to change some of our lira to £'s yesterday, I have never seen the exchange place so busy! As I was standing in the queue the sell.rate was ticking up before my eyes.
Just checked xe and the rate is 6.37 to the £.

https://www.ft.com/content/7e6d4d16-5dd ... 18e7146b04

https://www.dailyforex.com/files/22052018_01.png

"Could become £1 = 6.500 very quickly?"

Been and gone...
1 GBP =6.57032TRY @ 11:03 on 23/05/2018
https://www.xe.com/currencyconverter/co ... GBP&To=TRY

I said to a number of people, including local friends, last year that it would be 6 before the summer.
I did say to a couple of people a few weeks ago that they would soon wish they flipped out a 5.
And this hasn't even started yet, triple digits by the end of the year/next summer are a real possibility, or interest rates will have to go to the 40-50% mark. However, they can only be serviced by loan debt payments, and there won't be many of them.

The fat lady is warming up her vocal chords ........................... again.

6.42 on offer in Girne at 15.00

People with loans in Turkey are being made to convert to TL and given extended repayment periods. Erdogan want's to take control of the Central Bank, I see a disaster coming...just imagine in the UK if the PM tried to take control of the Bank of England what it would do to the pound and the stock market.

Anyway i went online banking with garanti and xchanged £2000 at 6.49 tl . I need to buy some white goods to furnish two flats . Im going to go and buy everything befor the prices go up!

That was good timing ! Just looked its 6.10 tl now ! The central bank has held an emergency meeting and hiked 300 basis points .wished id changed more now but then again who knows and i only keep enough tl for my shortvterm requirements .