Banking and Finance Bond yields tumble after Turkey unveils latest credit tweaks Turkish benchmark bond yields fell by around 300 basis points on Monday after the central bank adopted its latest regulations meant to boost certain types of corporate credit in the face of months of rising lending rates. On Saturday, the central bank unveiled new required bond holdings for lenders, boosting demand on Monday. The measures […] August 23, 2022
Manufacturing Turkish automotive output climbs 37.4% in July Production in Turkey’s automotive sector jumped 37.4 percent year-on-year in July to 93,659 vehicles, with exports climbing 16.2 percent to 59,596, the Automotive Manufacturers Association (OSD) said. Total automotive production rose five percent year-on-year in the first seven months of the year to 742,969 vehicles, while exports were up 2.7 percent to 526,601, the association […] August 22, 2022
Banking and Finance US warns Russia trying to bypass Western sanctions via Turkey US Deputy Treasury Secretary Wally Adeyemo told Turkish Deputy Finance Minister Yunus Elitas that Russian entities and individuals were attempting to use Turkey to bypass Western sanctions imposed over Moscow’s war in Ukraine, the Treasury Department said. In a phone call, the two also discussed ongoing efforts to implement and enforce the sanctions against Russia, […] August 21, 2022
Economy Turkey shocks markets by cutting interest rate, as inflation soars Turkey’s central bank shocked markets on Thursday by cutting its main interest rate by 100 basis points to 13 percent, saying it needed to keep driving economic growth despite inflation hitting nearly 80 percent and a monetary tightening trend among its peers worldwide. The lira dropped as much as 1.2 percent to 18.15 per dollar […] August 19, 2022
Economy Turkey to re-appoint ambassador to Israel Turkey and Israel will mutually re-appoint ambassadors, Turkish Foreign Minister Mevlut Cavusoglu said on Wednesday, marking a milestone in the two countries’ efforts to normalise ties. “Appointment of ambassadors was one of the steps for the normalisation of ties. Such a positive step came from Israel as a result of these efforts, and as Turkey, […] August 18, 2022
Tourism German airports hire Turkish workers to ease staff shortage Around 150 airport workers from Turkey will be deployed at German airports, according to an industry association, far fewer than initially expected despite staffing shortages that had caused travel chaos during the busy summer holiday season. In late June, the German government announced plans to fast-track work permits and visas for several thousand foreign airport […] August 17, 2022
Real Estate Turkish house sales drop 12.9% in July as Russians top buyer list Turkish home sales fell 12.9 percent in July on the year to 93,902 houses, with sales to foreigners dropping 12.4 percent, data from the Turkish Statistical Institute showed on Tuesday. Russians topped the list of foreigners with 1,028 houses purchased, reflecting how many have sought a financial haven in the wake of Moscow’s invasion of […] August 17, 2022
Economy Moody’s cuts Turkey’s sovereign rating, but raises outlook to stable Ratings agency Moody’s on Friday lowered Turkey’s sovereign credit rating by one notch to “B3” from “B2”, citing rising balance of payment pressures and risks of further declines in the country’s foreign-currency reserves. “(The) current account deficit will likely exceed earlier expectations by a wide margin, raising external financing needs at a time of tightening financial […] August 15, 2022
Economy Turkish central bank to keep rates at 14% despite high inflation Turkey’s central bank is expected to hold its policy rate unchanged at 14 percent for an eighth meeting next week, a Reuters poll showed on Friday, in the face of a global tightening cycle and rampant inflation at nearly 80 percent that shows no signs of falling. Most economists expect the key interest rate to […] August 14, 2022
Turkish locals’ forex and gold holdings rise $3.77bn Turkish locals’ forex and gold holdings rose $3.77 billion when adjusted for the parity effect to stand at $216.86 billion by August 5, data showed on Thursday, as corporates bought hard currencies. Turkish local corporates bought $4.27 billion last week, when adjusted for the parity effect, central bank data showed. Individuals sold $498 million in […] August 12, 2022
Economy Turkey offers ‘a warehouse and bridge’ for metals trade to Russia Western sanctions have given the Turkish metals sector a chance to serve as “warehouse and bridge”, the head of an industry group said, citing increased interest from Russian companies and also from European Union (EU) companies seeking to sell to Russia via Turkey. The West, including Britain and European Union countries, have imposed sanctions on […] August 9, 2022
Economy Turkey’s June current account deficit set for $3.4bn, says poll Turkey’s current account is expected to record a deficit of $3.4 billion in June and end the year with a deficit of more than $40 billion, a Reuters poll showed on Friday, as soaring energy prices widen the shortfall. The trade deficit, a major component of the current account balance, soared 184.5 percent in June […] August 6, 2022
Economy Exporters cut year-end targets in blow to government plans Turkish exporters are revising down year-end targets in a move that could derail the government’s economic plans as new orders drop amid signs of a global slowdown and inflationary pressure. Turkey’s exports rose by 19 percent year-on-year in the first seven months of 2022 to $144.4 billion, but deteriorating global conditions, exacerbated by the war […] August 5, 2022
Banking and Finance Turkish central bank’s net forex reserves rise to $9.12bn The Turkish central bank’s net international reserves rose around $2.4 billion to $9.12 billion in the week to July 29, rising to their highest level in two months, data from the central bank showed on Thursday. The exchange rate used by Reuters on Thursday was 17.9044. The net forex reserves dropped to $6.07 billion on […] August 5, 2022
Economy Turkey’s inflation surges to 70%, putting Erdogan in bind Turkey’s annual inflation jumped to a two-decade high of 69.97 percent in April, according to data on Thursday, fuelled by the Russia-Ukraine conflict and rising energy and commodity prices after last year’s lira crash. The surge in prices has badly strained households just over a year before presidential and parliamentary elections that could bring the […] August 4, 2022
Banking and Finance Turkey’s lira-protection scheme set to survive confidence test Turkey’s attempt to curb demand for foreign currency by protecting lira deposits looks set to survive its biggest test yet with deposits worth tens of billions of dollars being renewed, sources say, but the cost is rising as the lira slumps. President Tayyip Erdogan’s government introduced the scheme, which compensates depositors for lira losses against […] August 3, 2022
Economy Turkish manufacturing activity contracts for fifth straight month The Turkish manufacturing sector contracted for a fifth consecutive month in July as weakening demand, market uncertainty and price pressures all played a role in moderating output, a business survey showed on Monday. Turkey’s Purchasing Managers’ Index (PMI) for manufacturing stood at 46.9 in July, down from 48.1 in June, according to the survey by […] August 2, 2022
Central bank, companies clash over Turkey’s new loan rules A big Turkish business group and the central bank clashed on Friday over recent regulations covering loans, with the Istanbul Chamber of Industry’s (ISO) head saying the measures create “irredeemable” problems. Turkish authorities including the central bank and BDDK regulator have taken steps to limit loans to companies except those that are net exporters, as […] August 1, 2022
Economy Turkish central bank hikes inflation view to 60% Turkey’s central bank raised its annual inflation forecast to 60.4 percent for the year-end from 42.8 percent three months ago, continuing a trend of playing catch up with extreme price rises, according to a presentation by Governor Sahap Kavcioglu on Thursday. A Reuters poll showed economists expect inflation of 70 percent at the end of […] July 29, 2022
Turkey’s $800m robotic dinosaur amusement park lies desolate Giant dinosaurs and robot models abandoned among decrepit fair rides create a dystopian atmosphere in a defunct amusement park in the Turkish capital, which its opposition party mayor is now highlighting as a testament to past government profligacy. Three years ago, President Tayyip Erdogan opened the massive theme park with great fanfare ahead of local […] July 27, 2022
Retail Turkish consumer confidence rebounds in July from record low Turkey’s consumer confidence index rose by 7.4 percent to 68.0 points in July, official data showed on Wednesday, after hitting a record low of 63.4 points in June as surging inflation and a beleaguered lira weighed further on sentiment. The biggest improvement was seen in the general economic situation over the coming 12 months, with […] July 22, 2022
Economy Turkish lira tumbles to weakest point since December 2021 The Turkish lira weakened to 17.579 against the dollar on Tuesday, as the strong US unit and concerns over high domestic inflation and low interest rates dragged the currency to its weakest level since a full-blown currency crisis in December. Since the historic crash last year, the central bank has used its foreign exchange reserves […] July 20, 2022
