> I don't understand. There's no free lunch here. The downside
> is the risk involved. You have to repay this debt, not in your
> local currency, but in USD.
Well! The problem is different though. I am talking about exploiting the
current "initial conditions," not about why the current "initial conditions"
are what they are or how we got here.
You need to distinguish between the Turkish Treasury and the Turkish Central
Bank:
The Turkish Treasury already has 35 billion Eurodollar Bonds outstanding and it
has to pay this USD debt no matter who holds the debt. The Turkish Central
bank, on the other hand, has about 50 billion US dollars in its reserves, 27
billions of which are in the US Treasuries.
What is there, other than the current law, that stops the Turkish Central Bank
to sell some of these US Treasuries and, with the proceeds, buy some of these
Turkish Treasury Eurodollar bonds?
> Don't expect me to appoint you head of the Türkiye Cumhuriyet Merkez
> Bankasý any time soon.
Don't worry about that part. After what happened while I was back there I have
no hope to head anything in Turkey.
> I guess you could fool people once -- but you're already giving it
> away by stating your intention i in PEN-L.
It is intentional. The Central Bank of the Republic of Turkey is not the only
central bank on earth. Who knows, maybe some central bankers from several other
central banks of the world are watching us.
Sabri
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