Morning Brief – Turkish Lira

Humphrey Percy
Chairman and Founder
Wed 31 May 2023

Turkish Lira

While President Erdogan removed the uncertainty overhanging the Turkish market by winning the election in the run off over the weekend, the news served to cement the certainty that nothing much was likely to change with respect to Turkish economic policy or indeed the subservient role of the Central Bank of Turkey to the political leadership of Turkey that has uniquely embraced the concept of low rates to fight stratospheric inflation.

TRL at a new low of USD/TRL 20.62.

City of London Post Office

Across the road from SGM-FX headquarters is the last remaining full post office within the Square Mile of the City of London. Yesterday morning it was unusually full and when I asked what was driving this Tuesday morning footfall, I was told that it was due to the Bank of England sending anyone with GBP bank notes that are no longer legal tender to Eastcheap, the nearest Post Office. As it is an obligation of the issuer of GBP notes to exchange notes for members of the public, it is all a bit of a mystery as to why firstly there was a sudden surge in demand and secondly why the BoE was turning punters away.

GBP steady at GBP/USD 1.2405.

New Zealand

Normally when air travellers are placed on a wait list, it is because a flight is over sold and therefore the only option is to hope for some no shows. Air New Zealand have broken new ground by launching a weight list for their flights on the grounds that asking their passengers to step on to the scales prior to flying is both safer and also good practice ecologically. Stand by for complaints about fat shaming despite ANZ emphasising that customers’ weights will be confidential.

GBP/NZD 2.0530.

The Who

This day in 1976 The Who appeared at South East London’s football club ground belonging to Charlton Athletic. That day the band broke the record for the loudest rock concert ever at 120 decibels. Other contenders for the title are usual suspects bad boy British rock bands Deep Purple and Led Zeppelin and more recently Motorhead who hold the current record for ear drum splitting music. Here is one of the Who’s definitive anthems: My Generation:

People try to put us d-down (talkin’ ’bout my generation)
Just because we get around (talkin’ ’bout my generation)
Things they do look awful c-c-cold (talkin’ ’bout my generation)
I hope I die before I get old (talkin’ ’bout my generation)

This is my generation
This is my generation, baby

Why don’t you all f-fade away (talkin’ ’bout my generation)
Don’t try to dig what we all s-s-s-say (talkin’ ’bout my generation)
I’m not trying to ’cause a big s-s-sensation (talkin’ ’bout my generation)
I’m just talkin’ ’bout my g-g-g-generation (talkin’ ’bout my generation)

My generation
This is my generation, baby

Why don’t you all f-fade away (talkin’ ’bout my generation)
And don’t try to d-dig what we all s-s-say (talkin’ ’bout my generation)
I’m not trying to ’cause a b-big s-s-sensation (talkin’ ’bout my generation)
I’m just talkin’ ’bout my g-g-generation (talkin’ ’bout my generation)

This is my generation
This is my generation, baby
My my my generation

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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