On top of its already well reported economic woes, the Turkish Lira is now being further marked down by fears that the clash in the Caucasus between Armenia and Azerbaijan risks drawing in Turkey-the conflict is the most serious since 2016. Turkey has already weighed in against the Armenians. Those market fears have largely undone the good work of last week’s surprise 2% interest rate rise to support the currency. TRL is also under pressure as a result of a stronger USD. TRL has traded as low as 7.85 v USD, 9.14 v EUR and 10.09 v GBP. For those foreigners contemplating a move to Istanbul, there has never been a better time to buy an apartment overlooking the sea: a 4 bed duplex with stunning views and 246 sqm can be yours for TRL 6,726,000. Just imagine what USD 856,000 would buy you in NYC…not much!
This eco tale demonstrates that it is not only the UK that has its policy challenges with the EU: this time it is France and concerns the myriad of small rivers that crisscross La Belle France. In the interests of ecological continuity, the EU in concert with French civil servants has ordered at a cost of hundreds of millions of EUR the removal of dams and weirs across France that both manage and preserve river levels, fish stocks and other wild life. EUR 50 Million has already been spent in Western France alone with devastating consequences. What, you may ask is ecological continuity? It transpires that its aim is to allow fish to swim up and down rivers without facing obstacles. France even has a dedicated Ministry devoted to this aim which is named Ecological Transition “to restore the circulation of fish and the transport of sediments to obtain a good ecological state for waterways to stop the collapse of aquatic biological diversity.” Despite it being obvious that those same weirs and dams -many of which have been in place for hundreds of years- will need to be replaced at even greater cost in the future when this policy is declared kaput, the program continues to be rolled out by the EU and the French Ministry of Ecological Transition.
Frexit anybody?!
Ray Peterson had a hit with this number exactly 60 years ago in 1960. While RP left this world at the age of just 66 in 2005, a couple of his best songs endure such as Corinne, Corinna and especially Tell Laura I Love Her:
Laura and Tommy were lovers
He wanted to give her everything
Flowers, presents and most of all, a wedding ring
He saw a sign for a stock car race
A thousand dollar prize it read
He couldn’t get Laura on the phone
So to her mother Tommy said
Tell Laura I love her, tell Laura I need her
Tell Laura I may be late
I’ve something to do, that cannot wait
Discussion and Analysis by Humphrey Percy, Chairman and Founder
Click Here to Subscribe to the SGM-FX Newsletter
Related Insights
Morning Brief – Coalition
Charles Porter
Tue 16 Apr 2024
Coalition This briefing is about South Africa and the Rand, which frequently proves to be one of the more divisive subjects within our roster of currencies. In particular, with the election looming, this will be about South African governance. Not from a political or human perspective about what may be the best long term outcome […]
Morning Brief – US Tariffs on Chinese Imports
Humphrey Percy
Fri 23 Feb 2024
US Tariffs on Chinese Imports Recently we wrote about how Mexico has become the Number One trade partner for the USA. It now transpires that Mexico may have had what is known as a little assist with their numbers: the statistics for the number of 20 foot shipping containers for the first three Quarters of […]
Morning Brief – British Pound
Humphrey Percy
Wed 21 Feb 2024
British Pound There really was something for everyone in Bank of England Governor Bailey’s comments yesterday. Firstly he said that the BoE was comfortable with the market’s view of the decline in UK interest rates -meaning one presumes both on extent and timing. Then he followed it up by saying that the UK labour market […]
