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Ponce
25th July 2011, 01:47 PM
RUN...........DON'T WALK.
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Turkey Bank Moves to Stem Lira Losses, Cancels Dollar Buying.

QBy Selcuk Gokoluk and Ercan Ersoy - Jul 25, 2011 5:26 AM ET .

Business ExchangeBuzz up!DiggPrint Email ...Turkey’s central bank moved to stem a slump in the lira, suspending daily purchases of dollars and cutting the cost of long-term deposits in foreign exchange. The lira pared earlier losses.

The central bank in Ankara ended daily purchases of $30 million, according to an e-mailed statement today. It also reduced the reserve requirement for banks on foreign currency deposits of more than a year by as much as 2 percentage points to 9 percent.

The bank cited the need to monitor “implementation of the decisions taken by the EU leaders to resolve European countries’ public debts.”

The lira extended a two-year low today with investors citing concern that Turkey is not doing enough to tackle a current account deficit that widened to 9 percent of economic output in May. Central bank’s efforts, including making consumer lending more costly, have so far failed to trim the import bill while export growth has slowed with the crisis in Europe.

The lira fell 0.6 percent to 1.7075 per dollar at 12:19 p.m. in Istanbul. The currency dropped as much as 2.2 percent earlier.

http://www.bloomberg.com/news/2011-07-25/turkey-bank-moves-to-stem-lira-losses-cancels-dollar-buying-2-.html

Neuro
25th July 2011, 04:48 PM
Fortunately I don't have much of savings in Turkish Lira, some in USD, some in silver, and some more in gold. All good!

Ponce
25th July 2011, 04:50 PM
Neuro? unless you are thinking on moving trade gold for silver........or at least most of it.

Neuro
25th July 2011, 05:13 PM
Neuro? unless you are thinking on moving trade gold for silver........or at least most of it.

I did the opposite trade a couple of months ago, turned out OK. I will trade some gold and dollar for silver when I come back to Istanbul in early September, but I think once the debt ceiling is lifted silver will plunge hard. I think I can get sub $25 silver and +50:1 gold silver ratio! We'll see... Long term I am very silver bullish, short term I think we'll see a lot of turmoil mostly to the downside...