Turkish lira is significantly below fair value ?

G

goldsilverratio

Breaking News...The Turkish lira is significantly below fair value at the moment and may strengthen ? Fair value for the Turkish lira, based on macroeconomic fundamentals, “is somewhere around 5 to 5.50” to the dollar ? The lira was trading around 6.05 to the dollar on Wednesday after hitting a low of 7.24 on Monday ? ( https://af.reuters.com/article/africaTech/idAFL1N1V60QP )
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On a related matter, friends of Turkey may pledge to invest $15 billion into Turkish financial markets and banks ? Following the announcement, the lira firmed briefly from 6.04 to 5.8699 to the dollar, but eased back to 6.0200 on Wednesday afternoon ? http://www.arabnews.com/node/1357106/middle-east
 
I apologize, but I copied this from another thread:
"If this is about dollar strength (solid economy, raising FED, lira/Euro-dolllar/Brexit queasiness -- even TenCent take-down) -- a thesis I find entirely realistic, then we'd indeed see what we have today -- a big, calm, dump-down, with solid volume, and a TRIN camped at an entirely bearish 1.99. AND you'd have this pop in vol -- 16+, 17+, even the VIX9D 18.0 I spied around 11am ET.
"To me, then, while the *trigger* here was geopolitical Trumpidian econo-angst, the follow-on selling is freeing of cash -- perhaps as its primary agenda.
Andt THIS, to me, sez that things will continue into tomorrow, and perhaps well over another half-a-percent down.
"That's my take on the thesis. I think that makes it a hypothesis. Or a metathesis. Yeah.:cool:"

Reading of your news, it seems like 'vol'/turbulence will be in the wind, as the two sides (Turkey and Trumplings) tussle back and forth, and as (now) the Turkish fundamentals try to live up to the estimates. Yow.

AND, all of this may be solved with a phone call, followed by a tweet, followed by a jump of at least 0.50% in the S&P. :confused:

Not time to sell close-to-the-market....
(I'm actually 'an owner' for the next 70 minutes. Good Lord.....:wtf:)
 
sorry to abuse your thread , but how can invest in lira, I want to avoid buying cash in local exchange, I prefer some online way, and actually are there any investing instruments for lira currency ?
cheers
 
goldsilverratio said:
Breaking News...The Turkish lira is significantly below fair value at the moment and may strengthen ? Fair value for the Turkish lira, based on macroeconomic fundamentals, “is somewhere around 5 to 5.50” to the dollar ? The lira was trading around 6.05 to the dollar on Wednesday after hitting a low of 7.24 on Monday ? ( https://af.reuters.com/article/africaTech/idAFL1N1V60QP )
---------------------
On a related matter, friends of Turkey may pledge to invest $15 billion into Turkish financial markets and banks ? Following the announcement, the lira firmed briefly from 6.04 to 5.8699 to the dollar, but eased back to 6.0200 on Wednesday afternoon ? http://www.arabnews.com/node/1357106/middle-east
More...

Why do you think the Lira is trading bellow those calculations?
 
777 said:
Why do you think the Lira is trading bellow those calculations?
More...
If the plunge in the value of the Turkish lira results in an increase in foreign investor buying in Turkey with possible interest coming from Gulf countries etc... ? What effect, if any will this have on the USD/TRY pair ?
Keep in mind there has been a 40 percent depreciation of the local currency against the dollar since January etc.....?
 
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