The magnitude 7.2 earthquake that struck near Ercis is difficult from an economic point undoubtedly Turkey, which is typical for all economies, the natural ecological disaster of any kind. InvesTechFX provides a breakdown of what happened to this natural disaster, the impact of the economy and the impact on Turkey in the foreign exchange market.
Although it is too early to accurately predict long-term effects of the disaster produced some surprising developments. Turkey is the worlds 17th largest economy by nominal GDP, according to the International Monetary Fund, World Bank and the United States CIA World Factbook. The average of these three groups of turkeys is about $ 738 billion annual economic output of the United States.
Turkey has a diversified economy, with traditional elements such as agriculture and textiles, heavy industry in the form of manufacturing of automotive and transportation and construction industries and modern elements, including electronics and appliances. Such a diversified economy is in a better position, the impact of a natural disaster from a, to a large extent from a single raw material is large resist. It seems at this early stage, the predominant strike against Turkey, the loss of human life was.
The global economic crisis has had its impact on the economy of Turkey. The budget deficit was characterized TRY 23 billion in the first half of 2009, a figure that more than 10 times higher than in 2008, but Turkey is missing from exposure to toxic mortgage meant that no bank is passed under.
Current estimates of damage caused by the earthquake indicate that Turkey will need at least $ 20 billion to rebuild the United States. Economists estimate that Turkey is losing U.S. $ 300 million / day, but the credit has not been too strict a coup.
There is speculation that he received a silver coating on the horizon, Turkey on international aid in collaboration with a peak in the new building and increased domestic demand for consumer goods . Economists will point out that there is a chance for political and economic reforms in Turkey make their way to the introduction of the entry of Turkey into the EU.
traders looking online forex to speculate on currency pairs with the TRY, you will notice that the currency could not against major currencies as an event like an earthquake toppled suggest. In fact, the test was surprisingly resilient against the euro and the dollar. He has lost value against the yen.
After losing ground always against the euro this year will try to make a strong recovery from the earthquake, although seems the EUR / TRY to form, will be in charge of about 2.40. Volatility is much greater, and since early August, immediately after the earthquake. The USD / TRY is essentially the same story, except that the medium is not yet formed.
Given the TRY / JPY has lost value of the pound, after the earthquake, is reversed, however, completely erased the gains of one year.
TRY trade in one of these pairs is a clear case for using an ECN forex broker. Market Maker floating rate spreads efficiently traders pricing Forex online market spreads to 100 pips in USD / TRY and EUR / TRY. Saw the same TRY / JPY, just 20 pips spreads.
During a Forex broker ECN could theoretically take longer for an order to fulfill these three pairs, it is highly unlikely that a shift would be somewhere in the vicinity of the gap above.
Since Turkey is committed to processes of recovery and reconstruction, which will obviously take some time, there are those who try the morality of currency traders, benefit from a natural disaster, oblivious to the fact that currency speculators are turkeys economy with much-needed capital infusion to the question. Currently, it seems low, suggests that Turkey will be back from his past, and economic growth, it continues to rise in the ranks of major world economies.
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