Despite efforts to stop lira fall, Turks still worried

Turkish Lira banknotes are seen in this October 10, 2017 picture illustration. (Reuters)
Updated 26 May 2018
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Despite efforts to stop lira fall, Turks still worried

ANKARA: After the embattled Turkish lira weakened against the US dollar this week, Turks remain troubled over the economy despite the government’s reassurances.
The lira’s drama worsened on Wednesday when Japanese investors sold Turkish assets, after comments by President Recep Tayyip Erdogan spooked investors earlier in May.
The lira hit 4.92 against the dollar before paring back some of its losses on Wednesday after an emergency central bank interest rate hike, but for many it’s not enough.
In a busy bureau de change on one of Ankara’s popular streets, thoughts turn to the worsening situation and fears that the country is already in a “currency crisis,” as experts at Commerzbank have described it.
During AFP’s visit, dozens came in to change their liras into gold, dollars and euros.
Ali Yilik indicated he was not convinced by Ankara’s reassurances as he changed his money into dollars for work.
“Who wouldn’t be worried about the exchange rate (situation)? This is not something that happens in normal conditions. It is extraordinary,” Yilik, who sells construction material, said.
Ali’s son Yahya Yilik, who is the manager at Tunali Doviz, said more Turks were coming in buying euros and dollars amid worries that the lira would fall further.
“They think the lira will keep losing value,” Yilik told AFP, adding that interest rate increases were a “temporary measure.”
In the past “one or two weeks,” the manager said the center had sold more foreign exchange than those wanting to buy lira.
The fall followed Erdogan comments during his UK visit mid-May when he indicated he wanted a greater say in monetary policy if he won in June 24 polls. This then raised concerns over economic policy becoming more unpredictable.
Student Necdet Guven was in the bureau de change to obtain dollars ahead of a trip to the US in mid-June but said he was “really worried” about the economy.
“Because everyday our economy gets worse. In the past, Turkey used to be among the top countries for agriculture and livestock, but now we import meat from Serbia and straw from Russia,” Guven lamented.
“We are not that developed a country in terms of industry,” he added, saying he believed Turkey had the potential to develop the economy further.
The lira appeared to show no signs of dramatic improvement and was at 4.70 against the dollar on Friday. In the past month, the lira has lost over 16 percent of its value against the greenback.
In a bid to ease concerns, Deputy Prime Minister Mehmet Simsek — an ex Merrill Lynch economist trusted by markets — on Friday said the central bank “would do whatever is necessary” during an interview with NTV broadcaster.
“There is no question of taking steps back on either the independence of the central bank or the rule-based market economy,” Simsek vowed.
But not everyone looked at the situation pessimistically.
Orhan Albayrak said the euro and dollar’s value was increasing because of “outside forces’ economic pressure on Turkey,” adding there was “an artificial rise.”
But Albayrak, a wholesaler, was hopeful the lira’s fortunes would improve toward the date of the presidential and parliamentary elections.
“But when there are five, 10 days to the elections, I believe this increase will reverse,” he added.
Albayrak said the three percent key rate rise had some impact, but believed the lira could improve and “reach 4.2, 4.3” with further central bank moves supported by the government.
After the rate hike on Wednesday evening, Erdogan insisted Turkey would adhere to the global governance principles on monetary policy in the new system post-election.
But, Erdogan added he would not let those principles “finish our country off.”


Australian court fines Apple $6.7 million over iPhone ‘bricking’ case

Updated 8 min 57 sec ago
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Australian court fines Apple $6.7 million over iPhone ‘bricking’ case

SYDNEY: An Australian court fined US electronics giant Apple Inc. A$9 million ($6.7 million) on Tuesday after a regulator accused it of using a software update to disable iPhones which had cracked screens fixed by third parties.
The Australian Competitor and Consumer Commission (ACCC) sued the world’s biggest company by market value for “bricking” — or using a software update to disable — hundreds of smartphones and tablet devices, then refusing to unlock them if the devices had been serviced by non-Apple repairers.
On Tuesday the Australian Federal Court found in the regulator’s favor, saying Apple had breached the country’s consumer law by telling some 275 customers they were not eligible for a remedy if their device had been repaired by a third party.
“The mere fact that an iPhone or iPad had been repaired by someone other than Apple did not, and could not, result in the consumer guarantees ceasing to apply,” ACCC Commissioner Sarah Court said in a statement.
“Global companies must ensure their returns policies are compliant with the Australian Consumer Law, or they will face ACCC action,” Court said.
An Apple spokeswoman said in an email the company had “very productive conversations with the ACCC about this” without commenting further on the court finding.
The ACCC said after it told Apple about its investigation, the US company sought to compensate customers whose devices were made inoperable by the software update, known as “error 53.” So far, Apple had contacted about 5,000 customers, the ACCC said.
Apple has also offered to improve staff training, information about warranties and consumer law on its website, and processes to ensure compliance, the ACCC said.