Welcome to Money for the rest of us. This is a personal finance show on money, how it works, how to invest it, and how to live without worrying about it.

I'm your host, David Stein Stein today is episode 3.22. It's titled

Why Currency Exchange Rates Matter.

Hocken-Burglew, the chief executive of Arselik, Europe's second largest home appliance manufacturer,

was recently quoted in the New York Times as saying,

we hedge everything.

We don't take any currency risk. That's a principle we adopted a long time ago.

It helps us management just focus on our business and not worry what happens in the currency market.

Arceleik is based in Turkey.

He is saying the company's business revenue, expenses and income is not affected

by fluctuations in the currency exchange rate, between the Turkish

Lira and the euro, or between any other currencies in the countries are sleek operates.

Barat al-Barorak, President Rajep Taip Erdogan's son-in-law, was Turkey's finance minister from 2018

until a few weeks ago.

During his tenure, the Turkish Lira lost 46% of its value

relative to the US dollar and the euro.

Ambaroc said in September,

for me, the exchange rates are not important at all.

I don't look at that.

Except he actually really did care.

The Turkish government, in coordination with the Central Bank of the Republic of Turkey, has spent billions of its foreign currency reserves trying to keep the Lira from weakening further.

They've spent so much money that their foreign currency reserves, essentially their holdings of

...