Economy Earthquake to keep Turkish inflation above 40% Turkey’s devastating earthquake will keep inflation above 40 percent in the run-up to elections scheduled for June and will necessitate an additional budget, a government official and four economists said. They predict that the February 6 earthquake, which killed more than 43,000 people in Turkey, will cost the economy more than $50 billion, in line […] February 24, 2023
Economy Turkey supports jobs and wages in earthquake-ravaged south Turkey has launched a temporary wage support scheme and banned layoffs in 10 cities to protect workers and businesses from the financial impact of the massive earthquake that hit the south of the country. A 7.8 magnitude earthquake on February 6 killed more than 47,000 people in Turkey and Syria, damaged or destroyed hundreds of […] February 23, 2023
Banking and Finance Turkey dug deep into reserves to keep lira stable through quake Turkey’s central bank used $7 billion of reserves in the last two weeks to help steady the lira in the aftermath of devastating earthquakes, and reserves could remain under pressure in the weeks ahead, bankers said. The worst disaster in Turkey’s modern history killed tens of thousands and levelled areas of the south, temporarily closing […] February 22, 2023
Economy Turkey’s exports to Middle East rose 16.1% in January 2023 Turkey’s exports to Middle East countries rose 16.1 percent year-on-year in January 2023 to reach $1.43 billion, according to Turkish Exporters Assembly data. Overall exports in January hit $19.38 billion, a 10.4 percent increase year-on-year, the Daily Sabah newspaper reported, citing the data. Turkey’s exports to the UAE reached $223.1 million, driven by the jewellery […] February 20, 2023
Banking and Finance Turkey rages at shoddy construction after homes topple Residents of a luxury housing complex in southern Turkey thought their apartments were “earthquake-proof” until the structure toppled like a domino in last week’s devastating earthquake, leaving hundreds feared dead. Now the wreckage of the Ronesans Rezidans, which was advertised as “a piece of paradise” when it opened a decade ago, has become a focus […] February 19, 2023
Banking and Finance Turkey announces new measures to curb foreign currency demand Turkey’s central bank has asked banks to widen the spread for gold and foreign currency transactions to curb foreign currency demand, two sources with knowledge of the matter told Reuters. The central bank also asked the banking sector to increase derivative transaction costs to around 40 percent, the sources said, in a move aimed at […] February 17, 2023
Economy Turkey earthquake could mean loss of up to 1% of GDP in 2023 The devastating earthquake in Turkey could result in a loss of up to one percent of the country’s gross domestic product this year, the European Bank for Reconstruction and Development (EBRD) said in a report published on Thursday. The bank added this is a “reasonable estimate” due to the expected boost from reconstruction efforts later […] February 16, 2023
Markets Istanbul bourse jumps nearly 10% after quake-related closure Turkey’s stock index rose nearly 10 percent on Wednesday after five days of earthquake-related closure and last week’s steep losses, as government measures to prop up equities looked to be working. Sentiment remained fragile, however, with the lira hitting a record low. Borsa Istanbul halted trading on its equity and derivatives markets two days after […] February 16, 2023
Markets Turkey plans tax exemption to increase share buybacks The Turkish treasury is planning to provide tax exemptions to increase share buybacks of companies listed on the Borsa Istanbul stock exchange, state-owned Anadolu agency reported. When Borsa Istanbul reopens for trading after a shutdown of five days following a devastating earthquake, the authorities will announce the tax relief to encourage share buybacks of companies, […] February 15, 2023
Banking and Finance Turkey’s cost of damages from quake estimated at $84bn Turkey’s worst earthquake in almost a century has left a trail of destruction that could cost Ankara up to $84.1 billion, a business group said, while a government official put the figure at more than $50 billion. The combined death toll in Turkey and Syria from last Monday’s 7.8 magnitude quake approached 36,000 and looked […] February 14, 2023
Banking and Finance IMF says quake impact on Turkey’s growth won’t be similar to 1999 The impact of last week’s massive earthquakes on Turkey’s economic growth is unlikely to be as pronounced compared to one of similar magnitude in 1999, Daily Sabah newspaper reported, citing International Monetary Fund (IMF) executive director Mahmoud Mohieldin. Earthquakes ravaged southeastern Turkey and severely hit northern Syria, as thousands of buildings, including homes and hospitals, were flattened. […] February 13, 2023
Markets Turkish bourse shuts for five days and cancels trades after quake Istanbul’s stock exchange operator suspended trading until February 15 and cancelled all Wednesday’s trades in the wake of devastating earthquakes that struck Turkey and Syria on Monday. The tremors rocked Turkey and Syria in the early hours of Monday, with hundreds of buildings collapsing and the combined death toll across both countries climbing above 12,000. […] February 9, 2023
Banking and Finance Turkey and Syria quake: Nations extend support and aid Governments and international organisations from around the world have responded with offers of support after an earthquake of magnitude 7.8 struck central Turkey and northwest Syria. Below is a list of some of those announcements of support: UAE The UAE said it would set up a field hospital in Turkey and dispatch search and rescue […] February 8, 2023
Energy Iraqi oil flows resume to Turkey’s export hub after earthquakes The Iraqi crude pipeline to Turkey’s Ceyhan oil export hub resumed flows on Tuesday evening while a tanker docked to load crude, the first since a series of earthquakes on Monday, ship tracking showed and industry sources said. Bad weather earlier in the day had prevented loading. A massive earthquake that struck Turkey and Syria […] February 8, 2023
Banking and Finance Turkey’s lira hits record low but rebounds after earthquake Turkey’s lira briefly dipped to a record low and its main stock market fell 1.35 percent on Monday as the major earthquake added to pressures from a strong dollar and the war in Ukraine, as well as a surprise inflation reading. The lira slipped to 18.85 in early trade before retracing its losses to end […] February 7, 2023
Energy Korea submits proposal to Turkey on $33bn nuclear power project South Korea-based Korea Electric Power Corporation (KEPCO) has submitted a preliminary proposal to Turkey to take part in a project to build four nuclear power plants in the country, Yonhap news agency reported. KEPCO chief executive Cheong Seung-il met with Turkey’s energy minister, Fatih Donmez, presenting the proposal for the construction of four reactors capable […] February 6, 2023
Economy Turkey inflation dips to 58% but consumer prices rise Turkish annual inflation dipped to 57.68 percent in January, official data showed on Friday, but was well above forecasts despite a favourable base effect that is expected to carry on until President Tayyip Erdogan seeks re-election in May. Month-on-month, consumer prices rose 6.65 percent, the Turkish Statistical Institute said, nearly twice a Reuters poll forecast […] February 5, 2023
Banking and Finance Turkey said to keep interest rates low post-election Finance minister Nureddin Nebati said Turkey would keep interest rates low after elections expected in May and not reverse course on monetary policy, according to an interview published by Bloomberg. Contrary to some analyst expectations that President Tayyip Erdogan will roll back his stimulus programme after the vote, Nebati was quoted as saying the central […] February 3, 2023
Economy Turkey’s tourism revenue up 53% in 2022 but trade deficit widens Turkey’s tourism revenue hit a record $46.3 billion in 2022 even as its trade deficit swelled to more than $109 billion, as a fallout from war in nearby Ukraine brought a surge of Russian arrivals but also drove up energy-import costs. The two milestones for the big emerging market economy came as President Tayyip Erdogan […] February 1, 2023
Economy Turkish economic confidence tips towards ‘optimistic’ outlook Turkey’s economic confidence index rose 1.3 percent month-on-month in January to 99.3 points, nearly tipping toward an optimistic outlook, data from the Turkish Statistical Institute showed on Monday. The index, which points to an optimistic outlook when above 100 and pessimistic when below, hit a record low in 2020 before recovering as coronavirus measures were […] January 31, 2023
Turkey opens $500m facility to boost processing of gold reserves Turkey’s President Recep Tayyip Erdogan has opened the first phase of a $500 million gold mine facility that will process reserves found in the northwestern Bilecik province, Daily Sabah newspaper reported. Around 109 tons of gold was located in Bilecik’s Sogut district in December 2020 at an estimated value of around $6.38 billion. Erdogan said that the […] January 30, 2023
Banking and Finance Turkey received highest EBRD funding of $1.7bn in 2022 The European Bank for Reconstruction and Development (EBRD) invested €1.63 billion ($1.7 billion) in Turkey in 2022, the highest volume of annual investment in all the economies where the bank operates. EBRD’s cumulative investment in the country amounted to almost €17 billion, 85 percent of which has been in the private sector, the bank said […] January 27, 2023
