Pedal to the metal It looks like the new Governor to the Turkish Central Bank has put his foot on the gas to stop the Turkish Lira from falling. Let's hope he doesn't run out of gas any time soon. I hope so, but looking at the technical picture all he has done this morning is push the rate of the EURTRY back to previous support and back to the mean of the up trend.
Selling Gold? How much more Gold will they need to sell to change the trend? And is there any amount of Gold that can change the trend at all.
Serious stuff It would be interesting to watch, if it was not for the 80 million Turkish livelihoods that depend on the outcome. This is serious stuff. Best case scenario will be that the trend will turn at the cost of selling some Gold reserves. Worst case scenario is that the trend will continue and that Gold reserves will be depleted. This could lead to massive inflation and poverty. I sincerly hope it doesn't come that far.
Maybe you can shed some light on this... they had a B- ratting then it was down graded to a BB-. However I thought BB- is better than a B- .... I guess there is more than one reporting agency.
AAA, AA, A, BBB, BB, B, CCC, CC, C, & D.
tahacam24
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The bad thing is the thing you mentioned with gold has happened with the dollar. The government sold an insane amount of dollars (around 100 billion) since the last year and they sold an insane amount of dollars in the past and it's still didn't stop the dollar from rising. And the net dollar reserve became negative thanks to the government's poor strategy. And they gonna deplete the gold reserve if they gonna continue selling gold. Also, there's a lot of inflation right now (around 30-40%) but the government says it's %12. This is not good because the government doesn't give enough raise to the workers and that causes even more poverty.
Hope4Today9
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@tahacam24, So when Gold rebounds do you think that signals the end of their selling??
dave25981155
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@Hope4Today9, I don't think their selling influences the price of Gold too much. Gold price if mostly manipulated by the futures market.