Freemoneyforum.net Welcome, Guest. Please login or register.
Did you miss your activation email?
November 21, 2018, 09:30:55 AM
Home Help Search Login Register

Trading Forex Crypto MBC Nymex EXNESS
Trading Crypto currencies CFD 24/7 EXNESS
Binary option Crypto currencies 24/7 Olymptrade
InstaForex - the best broker in Asia InstaForex

+  MAKE MONEY ONLINE || FreeMoneyForum.Net
|-+  Online earnning
| |-+  Forex
| | |-+  why Turkey’s snap election won’t solve all the lira’s problems?
« previous next »
Pages: [1] Print
Author Topic: why Turkey’s snap election won’t solve all the lira’s problems?  (Read 241 times)
susanaP
Newbie
*
Posts: 15


View Profile Email
« on: May 21, 2018, 10:10:19 PM »

EUR TRY (Euro / Turkish Lira)

The Euro vs. the Turkish Lira. Traders have been attracted to this pair because of its high volatility during pre-crisis conditions, however, due to monetary policy aimed to maintain price stability in the Euro-Zone volatility has declined. In the past, the Turkish Lira has been pegged to currencies such as the British Pound, the French Franc and most recently the U.S. Dollar.

It will take more than a snap election to fix Turkey’s fundamental economic problems or provide more than a temporary lift to the long-suffering lira.

Turkey’s currency got a boost last week from President Recep Tayyip Erdogan’s surprise decision to call an early election for June 24 that he’s expected to win. The poll pre-empts a scheduled November 2019 election and victory would grant Erdogan another five years in office. It would also allow him to take on expanded presidential powers that voters approved narrowly in a referendum last year and become effective after the election.

“The lira’s reaction to the snap election was positive, which tells me that some investors, hedge funds and the like, still see attractive terms in Turkish assets,” Ugras Ulku, deputy chief economist at the Institute of International Finance, told MarketWatch. “The carry trade is still good here.”

In a traditional currency carry trade, investors borrow at a low interest rate and buy a currency to take advantage of higher yielding local assets or higher overnight bank rates.

However, the country’s reliance on foreign funding in a rising interest rate environment, uncertainty over policies even after the June snap election, slowing growth and geopolitical tensions are risks worth remembering, analysts said.

The snap election announcement led the Turkish lira (USDTRY)(TRY) to rally to a 2 1/2-week high last week. The dollar, however, remains up 2.6% versus the lira in April and 6.6% in the year to date. Against the euro (EURTRY) , the Turkish currency is off around 7.3% in 2018.

The lira is backstopped, however, by one of the highest yields in emerging markets besides the Argentinian peso (USDARS)(ARS) , according to Morgan Stanley. Official interest rates from major developed world central banks remain far below Turkey’s, with the Federal Reserve’s fed funds rate at 1.5% to 1.75% . One dollar last bought 4.0461 lira, up from 4.0664 lira late Thursday in New York.

And Turkey is reliant on this influx of foreign funds, as almost 70% of its current account deficit is financed through short-term foreign debt or portfolio inflows, said Ulku.

You can convert try to eur Now
Logged
Theodoric
Newbie
*
Posts: 2


View Profile Email
« Reply #1 on: June 29, 2018, 09:06:45 AM »

Presented in the profile to view as well as the needs of the people it quite well.
Logged
Kaiyohai
Newbie
*
Posts: 2


View Profile
« Reply #2 on: July 05, 2018, 11:20:11 AM »

These data are good information to make many. People get many benefits.
Logged

Pages: [1] Print 
« previous next »
Jump to:  


Login with username, password and session length

Powered by MySQL Powered by PHP Powered by SMF 1.1.11 | SMF © 2006-2008, Simple Machines LLC Valid XHTML 1.0! Valid CSS!
Page created in 0.046 seconds with 19 queries.