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Turkey rate hike to 25% in June is ‘on the table’

An interest rate hike to 25 percent from the current 8.5 percent is on the cards for Turkey’s monetary policy committee’s upcoming meeting on June 22, “if not earlier,” JPMorgan economists said on Monday. “A policy rate hike to 25 percent, from the current level of 8.5 percent, is on the table for June 22 […]

Turkey lira

Goldman Sachs says Turkish lira will weaken further

Goldman Sachs revised its Turkish lira forecast in the wake of President Tayyip Erdoğan’s cabinet revamp, saying it now expected the currency to weaken to 28 to the dollar in 12 months compared with a previous prediction of 22. Erdoğan signalled on Saturday his newly-elected government would return to more orthodox economic policies when he […]

Turkey’s Erdoğan signals economic U-turn

Turkey’s President Tayyip Erdoğan has signalled his newly-elected government would return to more orthodox economic policies when he named Mehmet Simsek to his cabinet to tackle Turkey’s cost-of-living crisis and other strains. Simsek’s appointment as treasury and finance minister could set the stage for interest rate hikes in coming months, analysts said – a marked […]

Turkey net forex reserves

Turkey’s net forex reserves at lowest on record  

The Turkish central bank’s net forex reserves dropped to their lowest level on record, standing at $-4.4 billion on May 26, data showed on Thursday, as it sought to counter forex demand ahead of and during parliamentary and presidential elections. The bank’s net reserves dropped by some $4.25 billion last week, to their lowest level […]

Turkish central bank ready to soften certain measures

Turkey’s central bank signaled at a meeting with senior bankers that it would respond positively to the banks’ requests to soften some measures which it has taken recently, three participants in the meeting said on Wednesday. A government-backed scheme to protect lira deposits from depreciation, known as KKM accounts, was among the issues discussed, the […]

Ma'aden's deal with PIF will allow it to invest in the iron ore, copper, nickel and lithium sectors

Turkey’s trade deficit widens as exports dip in April

Turkey’s trade deficit widened to $8.7 billion in April 2023, a 42.1 percent surge year-on-year (YoY), Turkish Statistical Institute (TurkStat) data showed. Exports fell 17.1 percent YoY to $19.3 billion, driven by a decline in mining, quarrying and manufacturing. Imports slipped 4.8 percent YoY to $28.1 billion, Daily Sabah newspaper reported. The country revealed a […]

Barclays sees Turkey policy rate at 36% by year-end

Barclays has reiterated its forecast that Turkey’s central bank would raise its interest rates to 36 percent by the end of the year after President Tayyip Erdoğan won the presidential elections on Sunday. “There is a need for adjustments to both rates and FX,” Barclays analyst Ercan Erguzel said in a note to clients, adding […]

Investors await Turkey’s move on economic policies  

The top policymaker picks of Turkey’s re-elected president Tayyip Erdogan are taking centre stage as markets try to gauge whether he will change course towards economic orthodoxy or double down on policies widely viewed as unsustainable. Erdogan is expected to use his victory in Sunday’s election to embark on a wide cabinet reshuffle, potentially changing […]

Erdogan reelection Gulf

Gulf leaders welcome Erdogan re-election

Gulf leaders have congratulated Recep Tayyip Erdoğan on his re-election as president of Turkey, as currency and stock markets had a more mixed reaction to the news. Saudi Arabia’s King Salman bin Abdulaziz Al Saud sent a cable of congratulations, the Saudi Press Agency reported on Monday, and UAE President Sheikh Mohamed bin Zayed Al […]

Erdogan says tackling inflation is most urgent issue

Turkish President Tayyip Erdogan said in his victory speech that inflation was the most urgent issue for the country, but said it would also fall, following the policy rate that was cut to 8.5 percent from 19 percent two years ago. “We are designing an economy focused on investment and employment, with a finance management […]

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Turkey holds policy rate at 8.5% ahead of poll runoff

Turkey’s central bank kept its policy rate at 8.5 percent on Thursday as expected, holding steady for a third straight month, despite a market rout after the first round of elections which indicated President Tayyip Erdogan was poised to win in the runoff. After Erdogan’s solid lead in the May 14 vote became clear, the […]

Erdogan says Gulf states sent cash to boost forex reserves

Turkish President Tayyip Erdogan said Gulf states recently sent funding to Turkey, briefly helping relieve the central bank and markets and he intends to meet and thank their leaders after Sunday’s runoff presidential election. “Our economy, banking and financial system are quite strong. Meanwhile, some Gulf states and such stocked money in our system. This […]

Turkey’s exports to Saudi surge 600% as ties improve

Turkey’s exports to Saudi Arabia surged to nearly $800 million during January-April 2023 amid the ongoing normalisation of diplomatic ties between the two Arab nations. Istanbul’s exports to Riyadh have grown over 600 percent in the first four months to $780.5 million, Daily Sabah newspaper reported, citing data by the Turkish Exporters Assembly (TIM). Exports to […]

Turkish President Recep Tayyip Erdoğan holds an election rally in Ankara

Erdogan’s party split on economic plan

Days before Turkey’s runoff presidential election, there is disagreement and uncertainty within Tayyip Erdogan’s government over whether to stick with what some call an unsustainable economic programme or to abandon it, insiders say. According to interviews with nine sources, either government officials or others with direct knowledge of the matter, an informal group of ruling-party […]

Lionel Messi and his family visit Riyadh on May 1. The World Cup winner is an ambassador for Saudi tourism, part of its strategy to attract 100m visitors a year

Middle East beats pre-pandemic tourism numbers

The Middle East has become the first region to return to pre-pandemic tourism levels for a full quarter, according to the UN World Tourism Organisation. In the first three months of 2023, international visitor arrivals to the Middle East were 15 percent higher than in the same period of 2019, the UN agency said. The […]

Turkey lira

Turkish lira hits record low after post-election rout

Turkey’s lira weakened to a record low against the dollar on Thursday, after incumbent Recep Tayyip Erdoğan’s lead in presidential elections surprised markets, while the nation’s sovereign dollar bonds steadied after a three-day post-election rout. The cost of insuring the country’s debt against default fell slightly, but equity markets and banking stocks endured fresh losses […]

Turkey’s market rout deepens after Erdoğan’s secures lead

Turkey’s market rout deepened on Tuesday amid investor expectations that President Tayyip Erdoğan could be able to extend his rule – and his unorthodox economic policies – into a third decade. Banking stocks and sovereign dollar bonds slid for a second day and the cost of insuring exposure to Turkish debt rose further after Erdoğan […]

Turkey helps drives Alfa Romeo’s Q1 growth

Italian luxury car manufacturer Alfa Romeo said Turkey was its fastest-growing market. Turkish buyers helped new registations of Alfa Romeos across the Middle East to rise 149 percent year on year in the first quarter of 2023.  The Arab country contributed 55 percent of the total growth in the Middle East. Volumes in Turkey quadrupled […]

A supporter of Kemal Kılıçdaroğlu, presidential candidate of Turkey’s main opposition alliance, awaits the election results

Uncertainty as Turkey prepares for runoff election

Political uncertainty across Turkey is expected to be reflected on financial markets over the next two weeks as voters prepare for the second round of a presidential election. Neither incumbent President Tayyip Erdoğan and his ruling AK Party nor his opposition rival Kemal Kılıçdaroğlu, head of a six-party alliance, achieved an outright majority in Sunday’s […]

Turkey lira

Turkey’s lira sinks to 2-month low in post-election trade

Turkey’s lira slipped to a two-month low as financial markets kicked off trading in the wake of the country’s Sunday presidential and parliamentary election. The currency weakened to 19.70 to the dollar before retracing some of its losses to 19.66, on track for its worst session since early November. That was not far off the […]