Posted on 08/13/2018 6:43:46 AM PDT by robowombat
Euro sank 13-month low over Turkey's spiralling Lira currency
The lira slipped below 7.0 to the US dollar and was down 12 percent on Friday’s value at one point this morning.
The currency is collapsing after Donald Trump doubled import duties on steel and aluminium as part of fresh sanctions on the country.
The euro had already plunged after the tariffs were imposed on Friday, with the currency dropping to a 13-moth low this morning.
.... The euro slid as low as $1.1365 before recovering slightly today.
The pound sterling opened at a 13-month low as the dollar continues to rise in the wake of the lira’s decline.
“This would be another blow for emerging markets as an asset class, but the wider economic spillovers should be fairly modest, even for the euro zone."
The Russian rouble slumped to a new low for the first time in two-and-a-half years. The Indian rupee slid to an all-time low.
The South Africa rand fell to 14.50 rand per dollar,..
The Indonesia rupiah hit its lowest point in almost three years and prompted an intervention from the country’s central bank.
The ripple effect has also been felt in Mexico and Argentina with their respective pesos also dropping.
.......
China's yuan weakened 0.5 percent - its steepest daily decline in nearly four weeks.
The Japanese Yen has risen to a six week high after climbing for a second day. But the Asia-Pacific shares outside Japan had fallen 1.7 percent.
But analysts expect Asia to ride out the storm thanks to ample foreign exchange reserves and prudent fiscal and monetary policies.
Analysts at Singapore's DBS said: "Asia should not see any contagion effect fundamentally due to the ongoing crisis in Turkey as the region does not have a meaningful exposure to the country.
(Excerpt) Read more at express.co.uk ...
Bwaaahaahaaa!!! Globalists will faint.
Remember when Howard Stern used to run his “Who Wants to be a Turkish Millionaire?” bit, where the winner would win $1.76? I think the world can survive a weak Turkish Lira.
Headline hyperbole strikes again. Not meant as a criticism to you, but this sort of economic reporting reminds me of the old pump-and-dump.
Boo Hoo ...........
Erdogan is looking for people to blame. It’s really his fault. I hope the military overthrows the clown.
By the way, a lot of people don’t recall obama’s first international call after he was elected. He called his one time favorite international friend Erdogan. I believe the relationship was strained after a while.
So no global economic crisis then.
It has done so before. When I was in Italy in '96 doing combat missions over Bosnia, we used to watch daily currency reports on the military news channel. It was close to hyper inflation at that time and the Turkish Lira was the world least valuable currency. It was revalued in 2005 and has sunk even lower.
Erdogan has already Islamicized the once secular Turkish military. What if he orders them to seize the rest of Cyprus?
And the article then goes on to not explain how that is supposedly happening. They're just all PO'ed that the dollar is strong and trump is MAGA!
Turkey has been nothing but a trouble maker throughout their history. There is no way we should allow them to sieze the rest of Cyprus. Obama isn’t president anymore. They’re economy is in the balance already. They shouldn’t try their luck.
And no butterflies, either!!
And so will the Lame Stream Media. This is the direct result of Pres. Trump's tariffs. He not only knew that other countries would have start playing fair trade, but also knew their currencies would be devalued against the USD.
I've been waiting since President Reagan for a president who understands global economics and doesn't play nicey nice just to get along and party with the United (corrupt) Nations. Trump's trade policy is going to make every nation in the world re-think their trade policies.
Read recently China's dictator for life may be in trouble because of US tariffs on their products. Their economy is hurting. Now, let's move to re-negotiate NAFTA. I was barely political at the time, but even I understood Perot's statement, "Can you hear the sucking sound of American jobs?", or something to that effect. I was entirely against NAFTA as it was written.
Pres. Trump has done more for our economy in my lifetime than anyone. I'm 68 years.
i’m sooooo sad for turkey....sending a bird to erdogan. :-)
It is just a way of blaming Trump because the good, old USA is doing great and everyone KNOWS that, by experience, not the Fake News.
The Trump Train rumbles to life as 3rd world $h!thole economies crumble under the Magic Negro’s policies.
The OEC says: "The top exports of Turkey are Gold ($12B), Cars ($9.4B), Delivery Trucks ($5.17B), Vehicle Parts ($4.4B) and Knit T-shirts ($3.17B), using the 1992 revision of the HS (Harmonized System) classification.
Its top imports are Cars ($10.3B), Refined Petroleum ($7.27B), Gold ($6.48B), Vehicle Parts ($5.24B) and Planes, Helicopters, and/or Spacecraft ($4.23B)."
See https://atlas.media.mit.edu/en/profile/country/tur/
FWIW the wiki has this about their steel exports:
"Steel-Iron industry Turkey ranks 8th in the list of countries by steel production. In 2013, total steel production was 29 million tonnes.[96] Turkey’s crude steel production reached a record high of 34.1 million tons in 2011.[97] Notable producers (above 2 million tonnes) and their ranks among top steel producing companies."
US Fed Gov figures: (https://ustr.gov/countries-regions/europe-middle-east/europe/turkey)
U.S. goods imports from Turkey totaled $8.0 billion in 2016, up 2.1% ($168 million) from 2015, and up 50.1% from 2006. The top import categories (2-digit HS) in 2016 were: iron and steel ($885 million), machinery ($876 million), vehicles ($728 million), carpets and other textile coverings ($360 million), and stone, plaster, cement ($352 million).
No doubt all the guys over at Zero Hedge are scrambling to get in their bunkers.
I think the problem is when a bank or hedge fund bets, using very little collateral, and it spreads. Happened before c1998 IIRC when some countries nearly caused a global collapse.
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