Manufacturing Baykar plans production of new air combat drone Turkish defence firm Baykar aims to begin production of its new unmanned combat aerial vehicle (UCAV) next year which is already attracting international interest, its chairman Selcuk Bayraktar said. Baykar has come to prominence internationally in recent years because of the company’s light drone TB-2, which has been used in Ukraine, Azerbaijan and North Africa […] April 30, 2023
Banking & Finance Turkey holds rate at 8.5% ahead of May elections Turkey’s central bank kept its policy rate at 8.5 percent on Thursday as expected, stressing the importance of supportive financial conditions to preserve economic growth momentum in its last policy meeting before May 14 elections. In February, the bank cut its key interest rate by 50 basis points (bps) to provide stimulus after earthquakes which […] April 28, 2023
Banking & Finance IIF cautious on Turkey’s lira amid possible devaluation The Institute of International Finance (IIF) has doubled down on its bullish view of the Brazilian currency while taking a cautious stance on the market’s pessimism towards Turkey’s lira. The IIF said in a report ahead of its currency fair value update that “market sentiment in both cases is more bearish than we are”. On […] April 28, 2023
Energy Veolia to operate Turkey’s first waste-to-energy plant French waste and water management company Veolia has secured the contract to operate and maintain Turkey’s first waste-to-energy plant, the largest in Europe, in Istanbul. The plant has a processing capacity of 1.1 million tonnes of non-recyclable household waste per year, Veolia said in a statement. The facility’s 85 mw turbine will save nearly 1.5 […] April 27, 2023
Agriculture Turkey imposes 130% tariff on some grain imports Turkey imposed a 130 percent import tariff of some grain imports including wheat and corn, according to a presidential decision published in the official gazette. The import duty comes after some European Union countries announced bans on grain imports from Ukraine last week. But some traders said Turkey’s move is largely to protect its local […] April 26, 2023
Economy Turkey inflation to fall 46% by end-2023 despite rate hike Inflation in Turkey will dip to 46.4 percent by end-2023, a Reuters poll showed, while the policy rate is seen rising to 24 percent next quarter after upcoming elections that pose the greatest challenge to President Tayyip Erdogan’s 20-year rule. Turkey’s consumer price index surged in the wake of a currency crisis sparked by an […] April 25, 2023
Banking & Finance Erdogan says interest rates will fall if he is in power Turkish President Tayyip Erdogan said that interest rates will fall as long as he is in power and that inflation will decline with them, repeating his unorthodox views. Erdogan was speaking in Istanbul weeks before a presidential election on May 14. Some anticipate a shift to more orthodox policies after the vote. Turkey’s central bank […] April 23, 2023
Energy Erdogan offers free gas after first Black Sea field shipment President Tayyip Erdogan on Thursday flicked the switch on Turkey’s first delivery of natural gas to an onshore plant from a reserve discovered in the Black Sea and promised to provide free natural gas for households before May 14 elections. The ceremony was the government’s latest attempt to showcase large energy and infrastructure projects in […] April 21, 2023
Banking & Finance UAE and Saudi investors to focus on Turkey after polls International investors are looking to increase investments in Turkey, notably in mergers and acquisitions, as they anticipate a shift to a more orthodox economic policy after May 14 elections, four government officials and analysts said. Opinion polls show President Tayyip Erdogan facing the greatest electoral challenge of his two decades in power in the presidential […] April 20, 2023
Banking & Finance Turkish interest rates climb as election approaches Interest rates in Turkey are rising amid expectations that government policies will become more orthodox no matter who wins the May 14 elections, and after a regulatory change to make holding Turkish lira more attractive to counter forex demand, bankers said. Despite soaring inflation, the central bank has slashed its key rate to 8.5 percent […] April 19, 2023
Banking & Finance JPMorgan expects Turkey lira to drop sharply after polls Turkey’s lira is likely to drop sharply and could near 30 to the dollar following next month’s elections, bankers at JPMorgan have predicted, if it looks like only modest changes will be made to its unorthodox economic policies. Turkey’s tightly contested presidential and parliamentary elections on May 14 are perhaps the most consequential in the […] April 16, 2023
Retail Pizza firm DP Eurasia evaluates Russia presence DP Eurasia, which runs the Domino’s Pizza brand in Turkey and Russia, on Wednesday said it was still weighing options for its Russian business after reporting a rise in its annual core profit as it hiked prices to offset high inflation. The company said it continued to evaluate its presence in Russia, including a possible […] April 13, 2023
Banking & Finance Turkey urges banks to avoid creating forex demand Turkey’s central bank has been urging banks in recent weeks to avoid steps that could create demand for foreign currency as May elections loom and to instead focus on new targets that involve monthly conversions of up to five percent of forex deposits to lira, bankers said. The lira is at all-time intraday lows. It […] April 13, 2023
Economy Erdogan begins campaign with pledge to slash inflation Turkish President Tayyip Erdogan launched his re-election campaign on Tuesday with a party pledge to slash inflation to single digits and boost growth, as he seeks to extend his two decades in power in a May 14 vote. Erdogan is facing the biggest political challenge since his AK Party (AKP) came to power in 2002, […] April 12, 2023
Energy Turkey to start pumping Black Sea gas from April 20 Turkey will begin pumping the natural gas discovered in the Black Sea into the national grid on April 20, President Tayyip Erdogan announced. In December 2022, the president announced the discovery of an additional 58 billion cubic metres (bcm) of natural gas reserves at the Caycuma 1 block in the Black Sea. The country’s natural […] April 9, 2023
Banking & Finance Turkey borrows $2.5bn via green bond issue The Turkish treasury has borrowed $2.5 billion in a green bond issue maturing in 2030 with a yield of 9.3 percent, two banking sources said. Demand for the issue was more than $8 billion with a 9.125 percent coupon rate, the bankers said. On Wednesday Turkey’s Treasury mandated Bank of America, ING, JP Morgan and […] April 7, 2023
Retail Tesla begins pre-orders for ‘pricier’ Model Y in Turkey Tesla has started taking pre-orders of in Turkey for its Model Y electric car, with deliveries slated to begin in May. The US company will sell three versions of the Model Y in the country, which will be sourced from Tesla’s plant in Berlin, Germany, Daily Sabah newspaper reported. The standard range version will be […] April 5, 2023
Economy Turkey’s exports to Russia surge 262% in March Turkey’s exports to Russia jumped 262 percent year-on-year in March, according to Turkish exporters’ assembly figures, reflecting the surge in bilateral trade since Moscow’s invasion of Ukraine last year sparked a flurry of Western sanctions. Turkey, Black Sea neighbours with Russia and Ukraine, opposes both the war and the Western sanctions. Last month it halted […] April 5, 2023
Manufacturing Turkish business conditions show tentative signs of improvement The embattled economy of Turkey took tentative steps towards a recovery in March, led by an increase in manufacturing and the first growth in new orders in a year-and-a-half. However, the effects of February’s devastating earthquakes, which killed more than 52,000 people in Turkey and Syria, are continuing to cause disruption, according to the Istanbul […] April 3, 2023
Economy S&P changes Turkey’s outlook to ‘negative’ amid high deficits S&P Global Ratings revised its outlook for Turkey to “negative” from “stable” on Friday, citing vulnerabilities from the country’s low policy rates, directed lending and regulatory control on its foreign currency positions and interest rates. Turkey continues to grapple with soaring prices of goods and services. And a devastating earthquake that hit the country earlier […] April 2, 2023
Banking & Finance Turkey central bank says policy stance adequate to back recovery The Turkish central bank said on Thursday the current monetary policy stance was adequate to support recovery following last month’s earthquake by maintaining price stability and financial stability. In the minutes of last week’s policy committee meeting, where the central bank left its key rate unchanged at 8.5 percent, it said the effect of quake-driven […] March 31, 2023
Energy Erdogan to cut power and natural gas prices and increase wages Turkey’s President Tayyip Erdogan has pledged to cut electricity and natural gas prices and increase the minimum wage. Electricity prices will be reduced by 15 percent, while gas prices for industrial users will be lowered by 20 percent in April, Daily Sabah newspaper reported the president as saying in the parliament on Wednesday. The presidential and […] March 30, 2023