Any economists on PP?

[rpant_gabba]

Are there any economists on PP?

I'm curious about how Turkey is staying afloat.

since Covid, Turkish Lira has devalued by 600%

How the hell does an economy stay afloat with currency evaluation like that?

PKR going from 200/USD to 300/USD has made life miserable for Pak awam.

how does turkey manage when it goes from 6/USD to 36/USD?

 

[Bhaijaan]

From the little knowledge i have of this matter (not of the economics), it’s that Turkey has depleted a significant part of its forex reserves in the last few years to stay afloat as the Lira tanked.

That’s all i know

 

[Bhaijaan]

There’s a wiki page on it as well i just realized :-

Currency interventions under Erdoğan administration​

Currency interventions under Erdoğan administration - Wikipedia

en.wikipedia.org

 

[Vikram1989]

It seems turkey have done a good job in last 2 years after a new finance minister (Mehmet Şimşek) have taken charge in 23.inflation was down to 39 percent from 85 in late 22.Turkey was able to increase forex to 100 billion usd.Seems the dictator bro arrested his primary presidential opponent on Wednesday and eroded 12 bn in one day.

Turkey spends record $12bn defending lira after Erdoğan rival’s arrest

Central bank’s currency intervention came as officials ‘lost control’ of market following Ekrem İmamoğlu’s detention

www.ft.com

As per above article I found the below statements interesting . gist is that just like doctors/lawyers, investors too won't kill the clients until there is no gain.

"But hedge funds and other investors looking to take advantage of interest rates of above 40 per cent have placed roughly $35bn in so-called carry trades, when traders borrow in low-yielding currencies to bet on high-yielding ones, according to JPMorgan".