Banking and Finance Turkish banks hike consumer and housing loan rates Consumer and housing loan interest rates at Turkish state banks have surged after the central bank almost doubled its key rate last month, while private banks have begun making limited consumer loans as regulations are eased. The central bank raised its key annual rate to 15 percent from 8.5 percent on June 22 and described […] July 5, 2023
Economy Turkey to continue hawkish policy to stem inflation Turkey will continue its monetary policy U-turn, which began with a sharp post-election rate hike last month, until the inflation outlook improves significantly, the central bank said. The hawkish policy guidance came as data showed the central bank’s net foreign reserves recorded their biggest weekly leap on record as the bank eased off interventions in […] July 4, 2023
Manufacturing Turkish manufacturing faces stifling cost pressures Turkish manufacturing output grew by the end of the second quarter, but new order growth softened and price pressures mounted because of currency depreciation, the latest industry tracker showed. The headline Purchasing Managers’ Index (PMI) for manufacturing, from Istanbul Chamber of Industry and S&P Global, stood at 51.5 in June. This was the same as […] July 4, 2023
Lifestyle Animated film helps revive Turkish cinema An animated film about children who help aliens stranded on Earth return to their home planet has helped revive the Turkish cinema industry after it slumped during the Covid lockdown. Rafadan Tayfa: Galaktik Tayfa, the third in a series of films spun off from a popular Turkish children’s TV show, has earned $6.7 million so […] June 28, 2023
Energy Turkey tops destination for Russia’s diesel exports in June Turkey will again be the top destination for Russian diesel exports in June, while total shipments are set to rise after seasonal refinery maintenance, traders said and Refinitiv Eikon data showed. Russia’s estimated offline primary oil refining capacity for June could total 4.029 million tonnes versus 4.95 million tonnes in May, Refinitiv data shows. Since […] June 27, 2023
Banking and Finance Turkey’s lira hits new low after bank rules’ rollback The Turkish lira slid as much as three percent to a record low against the dollar on Monday, after the central bank took steps to simplify policy, while an official and bankers said the bank had stopped using its reserves to support the lira. The lira weakened as far as 26.05 against the US currency, […] June 27, 2023
Manufacturing Coca-Cola subsidiary in Turkey plans expansion The Coca-Cola subsidiary in Turkey is in advanced talks to expand in existing and new markets, with a potential acquisition deal in Bangladesh possible within the next few months. Coca-Cola İçecek (CCI) is headquartered in Istanbul and operates in Turkey, Pakistan, Kazakhstan, Iraq, Uzbekistan, Azerbaijan, Kyrgyzstan, Jordan, Tajikistan, Turkmenistan and Syria. With 30 plants in […] June 26, 2023
Transport Food delivery drives Turkish motorbike sales Turkey has recorded a sharp rise in the number of motorcycles on its roads, as the online food delivery business in the country continues to expand. A total of 223,541 vehicles were registered in May, and 45.4 percent of these were motorcycles and scooters according to data published by the Turkish Statistical Institute (TSI). Cars […] June 26, 2023
Banking and Finance Investors hold money as Turkish rate hike disappoints Foreign investors hoping for a game-changing rate hike from Turkey’s newly appointed central bank chief said Thursday’s disappointing move to a key rate of just 15 percent could keep some money on the sidelines. The appointment of US-trained banker Hafize Gaye Erkan to lead the bank boosted expectations that it would rapidly raise rates to […] June 25, 2023
Energy Turkey talking to Russia and China for more nuclear plants Turkey is holding talks with Russia, South Korea and China to construct its second and third nuclear power plants. It is ready to build the second nuclear plant in the northern Sinop province, state-run Anadolu Agency reported, citing Salih Sari, head of the Turkish energy and natural resources ministry’s general directorate of nuclear energy and international projects. […] June 23, 2023
Economy Turkey hikes interest rates in attempt to curb inflation Turkey raised its benchmark interest rate by 6.5 percentage points on Thursday in the first hike since March 2021 as the central bank sought to soothe markets by bringing official borrowing costs closer to inflation. Following its inaugural meeting under the helm of fledgling central bank governor Hafize Gaye Erkan the monetary policy committee announced […] June 22, 2023
Banking and Finance Gulf sees potential in Turkish energy and defence Saudi Arabia and the UAE will invest in the Turkish defence and energy sectors, new reports citing identified sources suggest. If the Reuters report is accurate, the expected investments reflect a growing closeness between Turkey and the longstanding Gulf allies. Gulf support could be vital for Turkey, which is struggling with soaring inflation, a collapse […] June 22, 2023
Analysis Economy Turkish interest rates set to rise in quest to soothe markets Turkish policymakers are likely to raise interest rates on Thursday at their first meeting since veteran leader Recep Tayyip Erdoğan was re-elected as president. The hike will help to ease inflation and support the ailing lira but could cause banks major headaches. Following Erdoğan’s surprise electoral triumph on May 28, he appointed Mehmet Şimşek as […] June 20, 2023
Construction Construction workers on the up as Turkey rebuilds The number of construction workers in Turkey has risen 11 percent year-on-year to over 1.5 million in April, as the country rebuilds from the devastating earthquakes in February that killed 50,000 people. The disaster caused $34 billion worth of damage. Latest data from the Turkish Statistical Institute, reported this week, shows that the number of […] June 18, 2023
Banking and Finance Turkey’s central bank likely to hike policy rate to 20% Turkey’s central bank is expected to raise its policy rate by a huge 1,150 basis points next week, from 8.5 percent to 20 percent, a Reuters poll showed, in a policy U-turn after rate cuts under President Tayyip Erdogan led to a cost-of-living crisis. The central bank slashed its policy rate from 19 percent in […] June 18, 2023
Banking and Finance Erdogan sticks to ‘low inflation, low rate’ policy Turkish President Tayyip Erdogan said his newly appointed finance minister Mehmet Simsek will take unspecified steps swiftly with the central bank, but that it was a mistake to suggest Erdogan had changed his own views on interest rates. Since winning re-election last month, Erdogan, a self-proclaimed “enemy” of interest rates, has appointed Simsek as well […] June 15, 2023
Economy Analysts forecast bumper rate hikes in Turkey Analysts at leading investment banks expect Turkey’s new economic chiefs to start ramping up interest rates next week as part of a major reset of the country’s economic policies. President Recep Tayyip Erdogan, re-elected last month, has just appointed former US banker Hafize Gaye Erkan as the new central bank governor. She is his fifth […] June 14, 2023
Economy Turkey’s economic U-turn is not enough to rebuild trust Turkey’s expected return to orthodox economic policies may not be enough to secure longer-lasting international investments, with a restoration of predictability and the rule of law still needed to build trust, analysts say. While higher interest rates should draw some foreign investors back to Turkish assets, analysts say only fundamental changes in legal compliance will […] June 13, 2023
Economy Turkey’s exports to Gulf rise 29% to $1.69bn in May Turkey’s exports to Gulf countries grew by 29 percent year-on-year to $1.69 billion in May 2023. The total exports rose 14.4 percent annually to $21.7 billion last month, Daily Sabah newspaper reported, citing data from the Turkish Exporters Assembly (TIM). Exports to Iraq reached $817.9 million, followed by the UAE at $360 million and Saudi […] June 12, 2023
Banking and Finance Goldman Sachs expects Turkey rates to hit 40% Goldman Sachs said on Friday the appointments of Mehmet Simsek as Turkish finance minister and Hafize Gaye Erkan as central bank governor suggested a widespread understanding in the new administration that monetary and fiscal adjustments were needed. The Wall Street bank, in an overhaul to a number of its forecasts for Turkey, said stabilising the […] June 11, 2023
Banking and Finance Erdogan names ex-Goldman Sachs MD to head central bank President Tayyip Erdogan has appointed Hafize Gaye Erkan, a finance executive in the United States, to head Turkey’s central bank as it prepares to reverse course and tighten policy after years of rate cuts and a simmering cost-of-living crisis. Erkan, former co-CEO at First Republic Bank and managing director at Goldman Sachs, takes the reins […] June 9, 2023
Banking and Finance Lira plunges 7% as Turkey edges towards free market Turkey’s lira plunged 7.6 percent to a record low on Wednesday in its biggest selloff since the historic 2021 crash, and traders called it a “strong signal” that Ankara is moving away from state controls toward a freely traded currency. The lira has come under increasing pressure since President Tayyip Erdoğan was re-elected on May […] June 8, 2023
