Turkey's Unravelling Economy

Patrick Boyle On Finance

Patrick Boyle

Investing, Business

4.9 • 320 Ratings

🗓️ 21 December 2021

⏱️ 20 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Send us a textThe Turkish lira has been in meltdown as President Erdogan rejected warnings on the dangers of his recent interest rate cuts. He vowed that there was “no going back”.The currency, which has lost about 40 per cent of its value against the dollar since the central bank started lowering borrowing costs in September, fell to a new record low of TL18.36 against the dollar on MondayTrading on Turkey’s main stock exchange was halted for the second consecutive session following a ...

Transcript

Click on a timestamp to play from that location

0:00.0	Hello and welcome. You are listening to Patrick Boyle on Finance, a podcast exploring ideas from quantitative finance, examining events occurring in markets right now and financial history to see what lessons can be taken away, including interviews with some of the most interesting people in the world of finance. To learn more about the podcast, visit onfinance.org.
0:27.2	Turkey's main stock exchange halted trading on Friday when the circuit breakers kicked in after the main index fell 5%.
0:35.5	After trading resumed, the benchmark index was more than 8% lower. Turkey's stock
0:42.0	market has been up until now a safe haven from the chaos engulfing the country. Investors
0:48.3	were willing to own stocks betting that a weaker lira would be good for exporters.
0:54.3	Even after Friday's fall, the Turkish stock market is still up by more than 40% this year
1:00.6	in local currency terms.
1:02.7	That sounds good, but in dollar terms it's fallen by 36%.
1:08.0	This sell-off came as the Turkish lira fell a further 7% to a new all-time low on Friday,
1:14.6	a day after the central bank again lowered interest rates, despite a reported annual inflation rate of more than 20%.
1:23.6	This morning it's continued its collapse down an additional 6%.
1:28.5	Usually when researching a topic like this, I like to speak to financial experts on the ground in the country in question.
1:36.7	It's been easy to speak to experts on the ground in China in making my Evergrand series,
1:41.8	but because of the political situation in Turkey, anyone I've
1:46.5	contacted has said that they don't feel they'd be safe if they had an honest conversation
1:51.7	about the economy. They weren't even comfortable with the idea of an off-the-record conversation.
1:58.1	Okay, so let's start with some background on Turkey and its economy.
2:03.6	Turkey is a country with a proud history.
2:05.9	The Anatolian Peninsula, which makes up most of modern Turkey, is one of the oldest permanently
2:11.7	settled regions in the world.
2:14.2	Modern-day Turkey was established in 1923 after the Turkish War of Independence, when Mustafa Kemal Adeturk became the Republic's first president.
2:25.4	He transformed the old religion-based constitutional monarchy into a parliamentary republic with a secular constitution,
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Patrick Boyle, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Patrick Boyle and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.