Turkey relations with US and NATO

Vladimir79 wrote:

LMFS wrote:Economic war has been declared on Turkey. It is useless to blame Erdogan and start arguing how the markets would react differently to different economic policies. Fact is pals are treated magnanimously by the establishment while foes are crushed, and the agenda now is to get Turkey on its knees.

Erdogan created the current economic model reliant on foreign capital, there is no one else to blame but him.  It is not useless to talk about how he created this problem as fixing it is the only way to bring Turkey back to fiscal solvency.  

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[*]Erdogan has the popular support to ride this out.
[*]Erdogan has the international support of his new friends: Russia, China, Iran and India to keep the internal Turkish markets liquid.
[*]Erdogan is preparing for the move to leave NATO, now that China is prepared to militarily support the last phase of the Syrian Civil War in cleaning up Idlib.
[*]Turkey’s refusal to stop doing business with Russia and Iran on energy and defense puts them in a strong position to remake much of their economy.
[*]The Dollar will be removed from the Turkish economy in response to this regime-change attempt.
[/list]
These are the things we know.  We also know that China is Turkey’s biggest trading partner and will keep Turkey liquid through dollar-lira-yuan swaps.
Now that we have that out of the way it is really that hard to believe that Turkey didn’t invite this attack by the U.S.?
The proof of this is Erdogan’s refusal to accede to capital controls.  He’s letting the capital flight happen.  He wants the pain to be felt by everyone.  And once it’s over, Turkey can rebuild its currency, since it has huge gold and foreign currency reserves and low sovereign debt-to-GDP.
In other words, Erdogan is forcing a shock de-dollarization of the Turkish economy.  So, by the way, is Iran.

Vladimir79 wrote:U.S Congress to Lift Cyprus Arms Embargo

https://www.congress.gov/bill/115th-congress/house-bill/5508/text?format=txt

Vladimir79 wrote:U.S Congress to Lift Cyprus Arms Embargo

https://www.congress.gov/bill/115th-congress/house-bill/5508/text?format=txt

George1 wrote:
its time for Turkey to leave from Cyprus a greek island

George1 wrote:

Vladimir79 wrote:U.S Congress to Lift Cyprus Arms Embargo

https://www.congress.gov/bill/115th-congress/house-bill/5508/text?format=txt

its time for Turkey to leave from Cyprus a greek island

Isos wrote:

US don't care about history of the island. Its only about their interest. They will take the turks out to put their forces there and oblige them buy everything from US.

Isos wrote:

George1 wrote:

Vladimir79 wrote:U.S Congress to Lift Cyprus Arms Embargo

https://www.congress.gov/bill/115th-congress/house-bill/5508/text?format=txt

its time for Turkey to leave from Cyprus a greek island

US don't care about history of the island. Its only about their interest. They will take the turks out to put their forces there and oblige them buy everything from US.

Vladimir79 wrote:

Isos wrote:

US don't care about history of the island. Its only about their interest. They will take the turks out to put their forces there and oblige them buy everything from US.

You don't know the history of the island.  The Greek Cypriots are brothers of Russia, we are very close.  

Isos wrote:

Just like Ukraine and Russia were brother states and look now that US send some dollars to some guys your relations are dead.

Vladimir79 wrote:

Isos wrote:

Just like Ukraine and Russia were brother states and look now that US send some dollars to some guys your relations are dead.

Nothing like Ukraine where our brothers are fighting with us and the others were always against us.  Russian currency capitalizes Cypriot banks while most of their money is invested in the Russian economy.  Russian FDI is what keeps that island afloat as well as loans.  We need to get the British and Turks off the island and make it our base.    

Isos wrote:

That's not going to happen if you let the US do the work. They may remove the turks but they will let the UK base and probably make it a base for themselves to have it as a protection for israel, as a base against Turkey and to lock the black sea if they lose Turkey as an ally.

Press Release on Financial Markets

To support financial stability and sustain the effective functioning of markets, the following measures have been introduced:

I. Turkish lira liquidity management:

1) In the framework of intraday and overnight standing facilities, the Central Bank will provide all the liquidity the banks need.

2) Discount rates for collaterals against Turkish lira transactions will be revised based on type and maturity, thus providing banks with flexibility in their collateral management. Through this regulation, the discounted value of banks’ current unencumbered collaterals is projected to increase by approximately 3,8 billion Turkish liras.

3) Collateral FX deposit limits for Turkish lira transactions of banks have been raised to 20 billion euros from 7,2 billion euros.

4) As cited in the Monetary and Exchange Rate Policy Text for 2018, when deemed necessary, in addition to one-week repo auctions, which are the main funding instrument of the Central Bank, traditional repo auctions or deposit selling auctions may be held with maturities no longer than 91 days.

5) For the days with relatively higher funding need, more than one repo auction may be conducted with maturities between 6 and 10 days.

6) To provide flexibility in banks’ collateral management, upon the request of banks, a portion of or the entire amount of the winning bids in one-week repo auctions will be allowed to be used in deposit transactions instead of repo transactions at the Central Bank Interbank Money Market with the same interest rate and maturity.  

II. FX liquidity management:

1) Banks will be able to borrow FX deposits in one-month maturity in addition to one-week maturity.

2) The Central Bank will resume its intermediary function at the FX deposit market. Accordingly, through the intermediation of the Central Bank, banks will be able to borrow from and lend to each other at the FX deposit market as per the rules set by the Implementation Instructions on the Foreign Exchange and Banknotes Markets.

3) Banks’ current foreign exchange deposit limits of around 50 billion US dollars may be increased and utilization conditions may be improved if deemed necessary.

4) Banks will continue to purchase foreign banknotes from the Central Bank via foreign exchange transactions within their pre-determined limits at the Foreign Exchange and Banknotes Markets.

The Central Bank will closely monitor the market depth and price formations, and take all necessary measures to maintain financial stability, if deemed necessary.

George1 wrote:

Vladimir79 wrote:U.S Congress to Lift Cyprus Arms Embargo

https://www.congress.gov/bill/115th-congress/house-bill/5508/text?format=txt

its time for Turkey to leave from Cyprus a greek island

Hannibal Barca wrote:Erdoğan repeats Putin's recipe from a couple of years ago when devaluation hit Rouble. I expect Lira to go down to eight and eventually stabilise to seven dollars. 

Problem is, unlike Russia, Turkey runs deficits, so someone needs to step in and cover those deficits. With current exchange rate this is 10 billions per year. 

To put this in perspective,  even after government subsidies/funding, Tesla's budget deficit is 4.6 billion/year. So for a price tag of 2 Tesla's you can take Turkey in the backpack .. Sounds like a bargain to me, for SCTO & co

US don't care about history of the island. Its only about their interest.

LMFS wrote:And now Lavrov is in Ankara. Any ideas whether they are discussing something of substance in regards of Russian support for current Turkish economic woes?