Cross-border retail has become routine for many who find everyday purchases in Greece cheaper. Read more at straitstimes.com. Read more at straitstimes.com.
If Turks buy in Greece, doesn’t that make the Euro the weak currency? If the Turkish Lira is devaluating so much, they shouldn’t be able to exchange it into strong Euro to their advantage.
The central bank said on Nov 7 it expects inflation to close this year above 30 per cent,
How do they do this? 30% inflation means they are printing money. How do they manage to create the demand for Lira that they can buy Euros for cheap? Usually people would want to buy Euros and the value for Lira would fall.
If Turks buy in Greece, doesn’t that make the Euro the weak currency? If the Turkish Lira is devaluating so much, they shouldn’t be able to exchange it into strong Euro to their advantage.
The Turkish central bank artificially holds the value of the Turkish Lira at great cost. Turks take advantage of that.
How do they do it?
I think this is an example of purchasing power vs currency swap value.
How do they do this? 30% inflation means they are printing money. How do they manage to create the demand for Lira that they can buy Euros for cheap? Usually people would want to buy Euros and the value for Lira would fall.