Yesterday’s epic failure of central bank intervention when both Turkey and South Africa hiked rates only to see their currency initially bounce then collapse, is long forgotten, and early today, the USDTRY once again traded to the rather unstable level of 2.30 and threatened with yet another rout, before verbal intervention out of Russia managed to soothe nerves on edge around the EM world. What followed out of Turkey, however, was an epic verbal diarrhea from both the government and the central bank, which firmly proves the nation on the Bosphorus truly has no idea what it is doing. Here is the evidence.
First, here is the Finance Minister desperate to repreise Rahm Emanuel.
- SIMSEK SAYS TURKEY ‘WON’T WASTE THIS CRISIS’
- WE’LL TURN THIS CRISIS INTO AN OPPORTUNITY,’ SIMSEK SAYS
Next, some deep thoughts on capital flows
- SIMSEK: TURKEY SAW INFLOWS, NOT OUTFLOWS IN LATEST PERIOD
- SIMSEK: I BELIEVE WE WON’T SEE OUTFLOWS THIS YEAR
- SIMSEK: BUT WE ALSO HAVE TO ATTRACT CAPITAL
Next – a spirited defense of government policies
- SIMSEK SAYS ERDOGAN IS MISUNDERSTOOD ON INTEREST RATES LOBBY
- SIMSEK SAYS TURKEY’S INTEREST LOBBY TALK NOT ANTI-INVESTOR
- SIMSEK SAYS TURKEY GOVT PLANNING MEASURES ON CORRUPTION
A glimpse of Plan B thru Z, promising there will be no capital controls. Translation: by the time all is said and done, there will be capital controls.
- TURKEY WON’T RESTRICT CAPITAL MOVEMENTS, FINANCE MINISTER SAYS
- TOO EARLY TO TALK ABOUT USE OF FISCAL POLICY FOR SHOCKS: SIMSEK
- TURKEY HAS ROOM ON FISCAL POLICY TO DEAL WITH SHOCKS: SIMSEK
- IMPORTANT WHETHER TURKEY RATE INCREASE TO LAST OR NOT: SIMSEK
Finally, here is the central bank itself confirming nobody in Turkey has any idea what is going on
- TURKEY BANK: TIGHT POLICY SHOULD DETER INFLATION EST WORSENING
- TURKEY CENBANK SAYS INFLATION SEEN REACHING 5% TARGET MID-2015
- TURKEY BANK SAYS CURRENT STANCE ENOUGH TO ANCHOR INFLATION ESTS
- TURKEY BANK SAYS WON’T TOLERATE PRICE STABILITY DETERIORATION
- TURKEY CENBANK: FX MOVES RAISED ABOVE-TARGET INFLATION RISK
- TURKEY FLOATING RATE REGIME NOT BEING DEBATED, SIMSEK SAYS