Article is behind paywall, so here’s a brief summary:
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Turkey will require exporters to convert a quarter of their revenues to liras, the latest step in the government’s efforts to boost its reserves and support the local currency.
The central bank will buy 25% of all income from exports of goods so long as the exporters receive payments in U.S. dollars, euros or pounds, the monetary authority said in a decree on Monday.
Turkey Doubles Down on Lira-Deposit Plan Even as Currency Slides.
The measure is aimed at boosting Turkey’s foreign currency reserves by forcing companies to keep some of their revenues from sales abroad in the local currency. It comes after a year of severe losses in the lira, which lost nearly half of its value against the dollar last year as President Recep Tayyip Erdogan called on the central bank to lower its benchmark interest rate.
The lira is trading 0.3% weaker at 13.3430 per dollar at 3:54 p.m. in Istanbul, extending losses over the past year to just over 44%, the biggest such slump among major currencies.
What do the businesses say to this? I mean the government forces them to turn a sizeable chunk of their profit into currency that’s currently in an elevator to hell? 😀
Erdogan and his party are nothing more but destroying this beautiful country…
As someone born in Argentina, this sounds very familiar if you ask me…
Is Turkey the Argentina of the East? Had a lot of potential only to waste it away in bad domestic econ policies and populism…
Turkey going to shit.
Turkey: *Orders all exporters to flush 25% of revenue into the ocean*
Turkey: Why didn’t that work?!
We’ve seen this one before, the country defaulted.
Turkey will single-handedly be the top source for interesting economics papers in the coming years. They are running all kinds of crazy economic experiments in real time. No theoretical model can ever beat the real thing.
In r/Turkey I may not say this. But Erdolf is the bestest economist of all times.
Mark my words. This man goes for the full 100%
Nothing quite like ordering your last functioning exporters to do something that puts them at a serious competitive disadvantage….
13 comments
Article is behind paywall, so here’s a brief summary:
————————————————–
Turkey will require exporters to convert a quarter of their revenues to liras, the latest step in the government’s efforts to boost its reserves and support the local currency.
The central bank will buy 25% of all income from exports of goods so long as the exporters receive payments in U.S. dollars, euros or pounds, the monetary authority said in a decree on Monday.
Turkey Doubles Down on Lira-Deposit Plan Even as Currency Slides.
The measure is aimed at boosting Turkey’s foreign currency reserves by forcing companies to keep some of their revenues from sales abroad in the local currency. It comes after a year of severe losses in the lira, which lost nearly half of its value against the dollar last year as President Recep Tayyip Erdogan called on the central bank to lower its benchmark interest rate.
The lira is trading 0.3% weaker at 13.3430 per dollar at 3:54 p.m. in Istanbul, extending losses over the past year to just over 44%, the biggest such slump among major currencies.
What do the businesses say to this? I mean the government forces them to turn a sizeable chunk of their profit into currency that’s currently in an elevator to hell? 😀
Erdogan and his party are nothing more but destroying this beautiful country…
As someone born in Argentina, this sounds very familiar if you ask me…
Still no capital control?
I feel at liberty to [quote myself](https://www.reddit.com/r/europe/comments/ruyv9w/comment/hr2e7q9/?utm_source=share&utm_medium=web2x&context=3) from * checks watch * 24h ago.
Is Turkey the Argentina of the East? Had a lot of potential only to waste it away in bad domestic econ policies and populism…
Turkey going to shit.
Turkey: *Orders all exporters to flush 25% of revenue into the ocean*
Turkey: Why didn’t that work?!
We’ve seen this one before, the country defaulted.
Turkey will single-handedly be the top source for interesting economics papers in the coming years. They are running all kinds of crazy economic experiments in real time. No theoretical model can ever beat the real thing.
In r/Turkey I may not say this. But Erdolf is the bestest economist of all times.
Mark my words. This man goes for the full 100%
Nothing quite like ordering your last functioning exporters to do something that puts them at a serious competitive disadvantage….
Any bets on when gold is getting banned?