Inflation in Turkey’s biggest city, Istanbul, accelerated to 99.9% last month, according to the city’s main business association. Annual price increases jumped from 91.1% in July, according to the Istanbul Chamber of Commerce (İTO) in its price index published on Thursday. On a monthly basis, the price rose 2.29%, it said. Istanbul inflation is traditionally […]
Tag: Central Bank of Turkey
The Turkish lira is ‘tumbling’ towards an absolute low
Another Monday has come, another week begins with losses for the Turkish lira on Monday, nearing a record low after the Federal Reserve said interest rates in the United States could rise for some time. Higher US and European interest rates are reducing the attractiveness of emerging market assets such as Turkish bonds. The Fed’s […]
The cash inflows allowed Erdogan to calm down over the summer
A windfall of foreign capital flowing into Turkey and increased interest in the government deposit scheme triggered by Christmas 2021 have brought a temporary relief to Turkish President Recep Tayyip Erdogan with less than a year to go before Turkey’s most crucial election in decades . Erdogan’s program centered on monetary stimulus, exports and economic […]
Turkey: Interest rates suddenly cut despite record 80% inflation
Turkey’s central bank surprised markets by cutting its key interest rate by 100 basis points, despite inflation running rampant in the country at close to 80%. In particular, Turkey’s central bank’s benchmark interest rate, which had been at 14% for the past seven months, fell to 13%, following a completely opposite path to that followed […]
Smuggling and funds abroad: The inflow of money of ‘unknown origin’ in Turkey is at a record
Inflows of $17.5 billion from undisclosed sources covered more than half of Turkey’s current account deficit in the first half of the year — and the figure could reach a record level in the coming months, underscoring how dire the need has become of the country for foreign investment. Turkey’s current account gap widened to […]
HSBC: Turkish lira may hit 21 per dollar by June 2023
The Turkish lira could reach 21 per dollar by June next year, when the country is scheduled to hold presidential and parliamentary elections, British bank HSBC said. HSBC revised its estimate for the end of June 2022 from 18.2 pounds to the dollar, BloombergHT reported, citing the bank’s report. The pound traded down 0.4% at […]
Putin’s cash brought breaths to Turkey’s economy: The noose of the bear market is loosening
The return of optimism in global markets is lifting one of the most troubled countries, Turkey. The nation notorious for responding to high inflation with low interest rates was among the emerging markets hardest hit after the outbreak of war in Ukraine. Now, as fears of soaring consumer prices ease around the world, the bear […]
Turkish Lira ‘Slumps’ Slowly and Steadily – Foreign Exchange Reserves Running Out
The Turkish lira fell again on Monday, maintaining a slow slide towards 18 against the dollar, as concerns over the government’s exchange rate policy intensified in the face of rising inflation and fears of a global recession. The slow devaluation could continue unless Turkish authorities and more specifically Turkish President Recep Tayyip Erdogan and Turkish […]
BNP Paribas: Turkey’s economy is hanging by a thread
“Turkey’s economic situation continues to offer a stark contrast, with resilient growth on the one hand and soaring inflation, dwindling foreign exchange reserves and a devaluation of the lira on the other. In short, the reed is bending but not breaking,” BNP Paribas economists note. “In a previous edition, at the beginning of the year, […]
Central Bank of Turkey: Interest rates unchanged again – Pound again touches 18 against the dollar
The Interest Rate Committee of the Central Bank of Turkey (TCMB) kept it unchanged for another month, after its meeting on Thursday at noon. The key interest rate was kept at 14% for the seventh month in a row, after successive cuts last year sent the Turkish lira into crisis. However, the situation has not […]