UK Quantative Easing versus TL exchange rate

karakum5c



Joined: 18/03/2008
Posts: 1021

Message Posted:
11/11/2010 22:10

The Bank of England is indicating the UK will engage in more Quantative Easing in Feb/Mar next year.



If the UK prints even more money this will drive down the exchange rate against every other country including Turkey.



What will the rate of exghange be for TL / UK£ be next year after this ?



Is there any chance the Turkish Central Bank may devalue their currency ?



How far will TL rate sink 2TL or below ?



If nothing is done in Turkey tourism will nose dive unless Euro weakens even more, TRNC rely on sterling exchange so we are all going to get hammered.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
11/11/2010 22:16

The UK has exited recession, but was the last major economy to do so. Initially the growth rate was very slow, at 0.1%, but has improved since then. Between April and June the economy grew by a relatively credible 1.2%.

Some argue that lending to businesses and individuals is still sluggish, however. And one of the key aims of QE was to boost lending.

But some suggest there are signs that it has helped the financial markets by keeping down the interest rate on government bonds.

The simple fact is, no one knows how bad things would have been without QE.

Brinsley


Joined: 04/04/2009
Posts: 6858

Message Posted:
11/11/2010 22:43

QE is a hidden form of devaluation, bring back the Weimar Republic!



Richard

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
11/11/2010 23:28

Many of the dramatic and unusual economic behaviors now associated with hyperinflation were first documented systematically in Germany: order-of-magnitude increases in prices and interest rates, redenomination of the currency, consumer flight from cash to hard assets, and the rapid expansion of industries that produced those assets.



Surely you don't want a return to that Richard?

Brinsley


Joined: 04/04/2009
Posts: 6858

Message Posted:
12/11/2010 00:02

Bill

Have a quiet word with Mr R. Mugabe, he'll spill the beans of how it's done!



Richard

Lilli



Joined: 21/07/2008
Posts: 13081

Message Posted:
12/11/2010 00:06

richard have you sen the palace he lives in, next life im coming back poorer than i am now in a far away country the world feels sorry for and get all i can to buid a palace like that x

Deniz1


Joined: 28/07/2009
Posts: 3829

Message Posted:
12/11/2010 07:18

Maybe thats where all the aid money is being spent Lilli its like a bottomless pit.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
12/11/2010 09:07

You can't compare Mugabe to Cameron - can you?

yenibob


Joined: 13/10/2010
Posts: 1203

Message Posted:
12/11/2010 09:17

Wiki is a boon No1

Jovial_John


Joined: 31/01/2009
Posts: 1024

Message Posted:
12/11/2010 12:48

Turkey has recently expressed worries about the strength of the lira as it is hampering exports. Maybe they will try to ease the relative value of the lira - probably by lowering interest rates again. So the pound may not drop too much against the lira but that won't help if you count on interest from your savings.

eager


Joined: 23/02/2007
Posts: 1272

Message Posted:
12/11/2010 16:00

Lower lower !