Economy Turkish president says inflation not ‘insurmountable threat’ Turkish President Tayyip Erdogan said inflation is not an “insurmountable economic threat,” adding it will begin to fall at the end of the year after it surged to more than 80 percent in August. Under Erdogan’s economic programme, Turkey gradually cut interest rates by 500 basis points at the end of last year, sparking a […] September 21, 2022
Banking & Finance Syria weakens official exchange rate to US dollar by 7% Syria’s central bank has weakened its official exchange rate to 3,015 Syrian pounds to the dollar, a central bank statement said on Monday, while black market rates used for most economic activity sat around 4,440. The official rate was previously set at 2,814. Monday’s softening of the official rate represents a loss in value of […] September 20, 2022
Banking & Finance Turkey’s new rules force banks to curtail corporate lending Some Turkish banks are curtailing corporate lending after the government’s latest raft of regulations raised their costs and forced many to cut their balance sheet risks, five banking and private sector sources told Reuters. The new rules, part of President Tayyip Erdogan’s unorthodox management of the economy, have especially depressed longer-term lending. The owner of […] September 13, 2022
Banking & Finance Egypt faces currency conundrum as it seeks IMF’s financial support As Egypt pushes for a new International Monetary Fund (IMF) loan it has a choice between letting its overvalued currency weaken gradually and the kind of sharp depreciation it enacted in a similar currency crisis six years ago, with both options carrying risks, economists say. A severe shortage of foreign currency in Egypt over the […] September 8, 2022
Banking & Finance Russia considers proposal to buy up to $16bn of yuan in 2022 Russia’s government is considering a proposal which says Moscow could buy $3-4 billion worth of Chinese yuan a month to help stem the rouble’s rise, but that it does not make sense for the country to accumulate illiquid currencies longer-term. Flush with oil income, Russia is looking for ways to replenish reserves under a revived […] September 6, 2022
Economy Turkey’s inflation hits new 24-year high beyond 80% Turkey’s annual inflation climbed to a fresh 24-year high of 80.21 percent in August, a bit below expectations according to data on Monday, after the central bank unexpectedly cut interest rates and stoked a nearly year-long cost-of-living crisis. Inflation has raced higher since last autumn when the central bank gradually cut its policy rate by […] September 6, 2022
Economy Egypt non-oil activity continues to shrink, with weak outlook Non-oil private sector activity in Egypt shrank for the 21st month running in August, and businesses took a bleak view of the year ahead amid concerns over the currency, Ukraine and import bottlenecks, a survey showed on Monday. The S&P Global Egypt Purchasing Managers’ Index (PMI) improved to 47.6 from July’s 46.4, but remained below […] September 5, 2022
Economy Turkey sees inflation to ease to 65% by 2022-end Turkey expects inflation to ease to 65 percent by the end of the year from nearly 80 percent in July, while the current account deficit is seen at $47.3 billion in 2022, government forecasts showed on Sunday. President Tayyip Erdogan’s new economic model has prioritised growth, exports, employment and investment while seeking to cut interest […] September 5, 2022
Economy Goldman Sachs raises Turkey 2022 GDP growth to 5.5% Goldman Sachs said on Thursday it had raised its forecast for Turkey’s 2022 GDP growth to 5.5 percent from 3.5 percent, while lifting its 2022 current account deficit forecast to $45 billion from $36 billion. It said the Turkish Central Bank’s forex reserves had risen sharply since the third week of June and that, with […] September 2, 2022
Economy Turkey’s economy grew 7.6% in Q2 driven by domestic demand Turkey’s economy grew 7.6 percent year-on-year in the second quarter as expected, extending a hot streak on strong domestic demand and exports, according to data on Wednesday, though economic activity was seen slowing through year end as demand cools. Gross domestic product (GDP) expanded 2.1 percent compared with the previous quarter on a seasonally and […] September 1, 2022
Economy IMF approves $18.5bn flexible credit line for Chile The International Monetary Fund’s (IMF) executive board approved a flexible credit line of around $18.5 billion for Chile to give the world’s leading copper miner greater flexibility to confront risks from commodities price shocks to financial tightening. Chile is one of Latin America’s most stable democracies but has nonetheless been hit by a depreciating currency […] August 30, 2022
Economy Turkish trade deficit jumps 147% to $10.7bn in July Turkey’s foreign trade deficit surged 147 percent year-on-year to $10.69 billion in July, with imports surging 41.4 percent, data from the Turkish Statistical Institute showed on Monday. Imports stood at $29.24 billion, while exports rose 13.4 percent to $18.55 billion, the data showed. Under an economic programme unveiled last year, Turkey aims to shift to […] August 30, 2022
Egypt budget deficit narrow to 5.6% of GDP in 2022 Egypt expects more progress on reducing its budget deficit this year and a foresees a decline in its debt ratio after currency devaluations caused it to rise last year, Finance Minister Mohamed Maait told a news conference on Monday. The deficit was expected to narrow to 5.6 percent of gross domestic product (GDP) in the […] August 30, 2022
Banking & Finance Currency tops list of challenges for Egypt’s central bank governor Egypt’s new central bank governor, Hassan Abdalla, faces a daunting task as he tries to repair an economy derailed by an overvalued currency, rampant inflation and a banking system emptied of most of its foreign currency. President Abdel-Fattah Al-Sisi chose Abdalla for the position last week after outgoing governor Tarek Amer resigned suddenly, barely a […] August 29, 2022
Banking & Finance Egypt central bank increases cash withdrawal limits Egypt’s central bank on Thursday increased the maximum amount of cash customers are allowed to withdraw from their bank accounts and removed restrictions on how much they could deposit entirely. Under a rule put in place in April 2020, the central bank restricted withdrawals to EGP 50,000 ($2,600), but now will allow withdrawals of up […] August 26, 2022
Manufacturing Japanese manufacturing grows at slowest pace in 19 months Japanese manufacturing growth slowed in August after declines in output and new orders, as businesses grapple with persistent rises in raw material and energy costs and weakening global demand. The au Jibun Bank Flash Japan Manufacturing Purchasing Managers’ Index (PMI) recorded its most sluggish performance in 19 months, falling to a seasonally adjusted 51.0 in […] August 23, 2022
Tourism Foreign tourist arrivals to Turkey soar 53% in July Turkey’s foreign visitors jumped 53 percent in July from a year earlier, exceeding pre-pandemic levels and paving the way for $37 billion in tourism revenues sought by the government in support of President Tayyip Erdogan’s unorthodox economy policy. Foreign visitors to Turkey leapt to 6.67 million in July, mostly on the back of wealthy Russian […] August 23, 2022
Banking & 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
Banking & Finance Egypt’s central bank governor resigns a year early Egypt’s central bank governor Tarek Amer has submitted his resignation, the office of President Abdel Fattah Al-Sisi said on Wednesday, just over a year before the completion of Amer’s final term. There was no announcement of a replacement for Amer, who has been appointed as a presidential adviser. The central bank governor is one of […] August 18, 2022
Banking & Finance New Zealand central bank does not expect recession Reserve Bank of New Zealand Governor Adrian Orr said on Wednesday that while growth would slow he did not expect a recession, adding that the central bank believed it was on top of inflation, which has hit three-decade highs. “Through our projection period ahead, while we do not forecast a recession … we do forecast […] August 17, 2022
Egypt’s foreign currency gap narrows to $400m in July Egypt’s foreign currency gap narrowed to $400 million last month from $3.9 billion in February, deputy governor of the Central Bank of Egypt Gamal Negm said on Saturday. Egypt has seen billions of dollars leave its markets since the Russian invasion of Ukraine in February as investors have fled emerging markets for safer havens. But […] August 14, 2022
Banking & Finance Iran makes first import order using cryptocurrency Iran made its first official import order using cryptocurrency this week, the semi-official Tasnim agency reported on Tuesday, a move that could enable the Islamic Republic to circumvent US sanctions that have crippled the economy. The order, worth $10 million, was a first step towards allowing the country to trade through digital assets that bypass […] August 10, 2022