Banking & Finance 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 […] June 2, 2023
Banking & Finance 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 […] June 1, 2023
Trade 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 […] May 31, 2023
Banking & Finance 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 […] May 30, 2023
Economy 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 […] May 30, 2023
Economy 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 […] May 29, 2023
Economy 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 […] May 29, 2023
Banking & Finance 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 […] May 26, 2023
Banking & Finance 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 […] May 26, 2023
Economy 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 […] May 25, 2023
Economy 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 […] May 25, 2023
Tourism 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 […] May 24, 2023
Economy 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 […] May 19, 2023
Opinion Economy GCC sees Erdoğan as best bet for Turkish president However, concerns remain over Turkey's wider economic policy May 17, 2023
Banking & Finance 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 […] May 17, 2023
Retail 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 […] May 16, 2023
Economy 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 […] May 15, 2023
Banking & Finance 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 […] May 15, 2023
Analysis Economy Gulf awaits vital Turkish election results The Turkish presidential and parliamentary elections on Sunday will be keenly watched by Gulf investors who have bet billions of dollars on the world’s 19th-largest economy. Should incumbent president Recep Tayyip Erdoğan and his ruling AK Party again prevail in the votes, Turkey will maintain its unorthodox monetary policies. The central bank has slashed interest […] May 12, 2023
Aviation Turkish Airlines to order 600 aircraft amid competition Turkish Airlines will order a total of 600 new aircraft in June to be delivered within ten years, company chairman Ahmet Bolat said. Such an order, if confirmed, would be the largest in the industry’s history by a single airline, eclipsing a record order by Air India for 470 Airbus and Boeing planes in December, […] May 12, 2023
Energy Turkey defers $600m Russian energy payment Turkey has deferred payment to Russia of a $600 million natural gas bill to 2024, two sources said on Wednesday, the first such postponement under a deal announced last week that underlines deepening ties between Ankara and Moscow. Under the terms of the agreement, up to $4 billion in Turkish energy payments to Russia may […] May 11, 2023
Analysis Tourism Turkey pins hopes on return of Gulf tourists Turkey is anticipating an increase in visitors from the Gulf countries in the coming months, following devastating earthquakes and Ramadan. Foreign tourist arrivals in the first quarter rose over 26.7 percent year-on-year to 6.2 million, reported the Daily Sabah newspaper, citing data from the Culture and Tourism Ministry. Industry officials expect an average 20 percent […] May 8, 2023
