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But it was the repeated use of the word holistic - or "bütüncül" - by the former Goldman Sachs banker and Turkey's first female central bank chief that caught most of the attention. "We are making the gradual and steady rate hikes more holistic and stronger through quantitative tightening and selective credit tightening," Erkan told the news conference. "Unless the credit and monetary tightening really kick in, investors would expect the central bank to hike more aggressively," he said. "She clearly wants to be the face of Turkish monetary policy making," said Neuberger Berman's Nazli. "We saw a person who seems to be capable of being a central bank governor, compared to previous governors, but cautious."

Persons: Goldman Sachs, Hafize Gaye Erkan, Erkan, Tayyip Erdogan, Turkey's, Kaan Nazli, Neuberger Berman, policymaker Mehmet Simsek, Tim Ash, Erdogan, Ash, Marek Drimal, Neuberger Berman's Nazli, swerved, Emre Akcakmak, Karin Strohecker, Libby George, Tomasz Janowski Organizations: Turkey's, Ministry, BlueBay Asset Management, Societe Generale, East Capital, Thomson Locations: Rosario, London

Many investors think that will only happen if interest rates go to levels just too high for investors to pass up. "You wonder whether they have left it too late" said Mikhail Volodchenko at one of Europe's largest fund managers AXA IM. Reuters Graphics4/LOCAL PROBLEMSIn contrast to the dollar bonds, Turkey's 'local' lira-denominated bonds have had a shocker. Even if the lira is taken out of the equation the bonds are still down around 13% since Erdogan's election win. Reuters Graphics($1 = 0.8920 euros)Reporting by Marc Jones and Canan Sevgili Editing by Shri NavaratnamOur Standards: The Thomson Reuters Trust Principles.

Persons: Tayyip Erdogan, Erdogan, Mehmet Şimşek, Hafize Gaye Erkan, Mikhail Volodchenko, Enver Erkan, Yatirim, Treasuries, COVID, Wednesday Erdogan, Simon Lue, Fong, Vontobel, Turkey's, Jeff, Michael Metcalfe, Metcalfe, Marc Jones, Shri Navaratnam Organizations: LONDON, AXA, Reuters, JPMorgan EMBI Global, NATO, Investment, Wednesday, United Arab Emirates, JPMorgan GBI, Street Global Markets, Reuters Graphics, Thomson Locations: Central, Turkish, Nigeria, Argentina, Turkey, U.S, Arab, Swiss, Lira

☆ Turkey's Erdogan ends Gulf tour with Abu Dhabi visit
▼ + stars: | 2023-07-19 | by ( Rachna Uppal | ) www.reuters.com time to read: +2 min

Abu Dhabi is Erdogan's last stop in a Gulf tour that included the Saudi Red Sea city of Jeddah and Doha. Reaping the benefits of his diplomatic efforts, Saudi Arabia agreed on Tuesday to buy Turkish drones in the biggest defence contract in Turkey's history. Turkey also sent troops to Doha when Saudi Arabia and the UAE imposed a blockade on Qatar in 2017. Abu Dhabi agreed last year to a $5-billion swap deal in local currencies with Ankara to help its struggling lira. Reporting by Rachna Uppal in Abu Dhabi and Yousef Saba in Dubai, writing by Aziz El Yaakoubi; Editing by Bernadette BaumOur Standards: The Thomson Reuters Trust Principles.

Persons: Tayyip Erdogan, Abu Dhabi, Cevdet Yilmaz, Mehmet Simsek, Sheikh Mohammed bin Zayed, Rachna Uppal, Yousef Saba, Aziz El Yaakoubi, Bernadette Baum Organizations: United Arab Emirates, Turkish, Thomson Locations: ABU DHABI, Abu Dhabi, Saudi Red Sea, Jeddah, Doha, Saudi Arabia, Riyadh, Turkey, UAE, Qatar, Ankara, Nahyan, Gulf, Dubai

☆ Saudi Arabia buys Turkish drones during Erdogan's visit
▼ + stars: | 2023-07-18 | by ( Aziz El Yaakoubi | ) www.reuters.com time to read: +3 min

Erdogan and Saudi Crown Prince Mohammed bin Salman attended the signing ceremony between Turkish defence firm Baykar and the Saudi defence ministry, Saudi state news agency SPA reported. Erdogan arrived in the Saudi Red Sea city of Jeddah on Monday for the first stop of a Gulf tour. Saudi Arabia will acquire the drones "with the aim of enhancing the readiness of the kingdom's armed forces and bolstering its defense and manufacturing capabilities," Defence Minister Prince Khalid bin Salman said in a tweet on Tuesday. SPA said Erdogan and Prince Mohammed attended the signing of a defense cooperation plan by Prince Khalid and Turkish Defence Minister Yasar Guler. Developing a local military industry has been part of an ambitious plan by Prince Mohammed to diversify the kingdom's economy away from oil.

Persons: Tayyip Erdogan, Erdogan, Saudi Crown Prince Mohammed bin Salman, Baykar, Prince Khalid bin Salman, Haluk Bayraktar, Jamal Khashoggi, Prince Mohammed, Prince Khalid, Yasar Guler, Cevdet Yilmaz, Mehmet Simsek, Sheikh Mohammed bin Zayed, Enas Alashray, Daren Butler, Jamie Freed, Lincoln, Tomasz Janowski, Bernadette Baum Organizations: Saudi Crown, Defence, Investments, United, United Arab Emirates, Turkish Defence, Turkish, Thomson Locations: RIYADH, Saudi Arabia, Saudi, Saudi Red Sea, Jeddah, Ankara, United Arab Emirates, Turkey, East, North Africa, Istanbul, Qatar, United Arab, Riyadh, UAE, Nahyan, Cairo

Saudi state-run al-Ekhbariya television showed several Saudi officials welcoming Erdogan as he arrived at the venue of a Saudi-Turkish business forum in the Red Sea city of Jeddah. Erdogan is expected to meet with Saudi Crown Prince Mohammed bin Salman, the kingdom's de facto ruler, later on Monday. "Turkey will have a serious investment opportunity in the defence industry, infrastructure and superstructure investments in the three countries," he said. Ekhbaria carried live footage showing Saudi Investment Minister Khaled al-Falih addressing dozens of businessmen from both sides at the Saudi-Turkish business forum in Jeddah. Turkey's budget deficit surged to 219.6 billion lira ($8.37 billion) in June, seven times the deficit a year earlier, data showed on Monday.

Persons: Tayyip Erdogan, Erdogan, Saudi Crown Prince Mohammed bin Salman, Ekhbaria, Khaled al, Cevdet Yilmaz, Mehmet Simsek, Sheikh Mohammed bin Zayed, Yilmaz, Huseyin Hayatsever, Ali Kucukgocmen, Daren Butler, Aziz El Yaakoubi, William Maclean Organizations: Saudi Crown, . Investments, United, Turkish, Saudi Investment, Thomson Locations: ISTANBUL, RIYADH, Saudi Arabia, Turkey, Saudi, Turkish, Red Sea, Jeddah, Ankara, United Arab Emirates, Istanbul, Qatar, UAE, Nahyan

☆ Turkey aims to ensure fiscal discipline and lower budget deficit, finance minister says
▼ + stars: | 2023-07-09 | by ( ) www.reuters.com time to read: +1 min

ISTANBUL, July 9 (Reuters) - Turkey is taking measures to re-establish fiscal discipline and control the level of the budget deficit, Finance Minister Mehmet Simsek said on Sunday. The budget deficit for the first five months of the year was 263.6 billion lira ($10.12 billion), compared to 124.6 billion lira a year ago due to increased spending ahead of May elections and the impact of February's earthquakes in southern Turkey. "We will not allow permanent deterioration in public finance indicators by reestablishing fiscal discipline and taking budget deficit under control," Simsek said on Twitter. "The package, which is being discussed in the parliament, aims to reduce the impact of the additional costs caused by the earthquake on the budget. These regulations will also indirectly support taking the current account deficit under control."

Persons: Mehmet Simsek, Simsek, Ezgi Erkoyun, Elaine Hardcastle Organizations: Twitter, Thomson Locations: ISTANBUL, Turkey

☆ Turkey expects $10 billion in Gulf investments after upcoming Erdogan visit, sources say
▼ + stars: | 2023-07-07 | by ( Orhan Coskun | ) www.reuters.com time to read: +2 min

ANKARA, July 7 (Reuters) - Turkey expects Gulf countries to make direct investments of about $10 billion initially in domestic assets as part of President Tayyip Erdogan's trip to the region in two weeks, according to two senior Turkish officials. Direct investments worth about $10 billion "should come within a short time and this is crucial," said one of the officials. "Expectations are high for the Gulf visit. Reuters reported after the visit that Turkey came away expecting direct investments soon. The official said the expected investments from Gulf states would "show confidence in the Turkish economy since it would be direct investments, which is extremely important."

Persons: Tayyip Erdogan's, Erdogan, Abu Dhabi, Cevdet Yilmaz, Mehmet Simsek, Sheikh Mohammed bin Zayed, Yilmaz, Jonathan Spicer, Ros Russell Organizations: Turkish, United Arab Emirates, Reuters, Thomson Locations: ANKARA, Turkey, Saudi Arabia, Qatar, Riyadh, Doha, Abu, Ankara, UAE, Nahyan, Turkish

☆ Analysis: Investors lament lost opportunity after unconvincing Turkish rate hike
▼ + stars: | 2023-06-23 | by ( ) www.reuters.com time to read: +4 min

REUTERS/Murad Sezer/IllustrationLONDON, June 23 (Reuters) - 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% could keep some money on the sidelines. "They lost one perfect chance to demonstrate that they mean business," said Viktor Szabo, emerging markets investment director with Abrdn. But analysts said that after Thursday's decision, Erkan and Simsek would need to work even harder to prove the country had indeed shifted course. Already in the week to June 16, foreign investor holdings of Turkish government bonds had fallen by $16.2 million. "I don't think investors will throw in the towel just yet because I think there is still expectation there is more to come in the coming months," said Kaan Nazli, portfolio manager at Neuberger Berman.

Persons: Murad Sezer, Thursday's, Hafize Gaye Erkan, Viktor Szabo, Abrdn, it's, It's, Tayyip Erdogan, Mehmet Simsek, Eric Fine, Marek Drimal, Simsek, Dan Wood, William Blair, Fitch, Erdogan, Erkan, Kaan, Neuberger Berman, Karin Strohecker, Marc Jones, Toby Chopra Organizations: REUTERS, Societe Generale, Thomson Locations: Istanbul, Turkey, VanEck

☆ Turkey hikes interest rates as Erdogan reverses policy on fighting inflation
▼ + stars: | 2023-06-22 | by ( Anna Cooban | ) edition.cnn.com time to read: +1 min

London CNN —Turkey’s central bank hiked interest rates to 15% from 8.5% Thursday in a dramatic reversal of its unorthodox policy of cutting the cost of borrowing to tame painfully high inflation. Annual consumer price inflation has come down from a two-decade high of 85.5% in October but was still almost 40% in May. This is the first rate decision by Turkey’s central bank since last month’s reelection of President Recep Tayyip Erdogan. Erdogan had ordered his central bank to cut rates nine times since late 2021, when inflation around the world started to accelerate, whereas most economies have raised rates. In that time, the value of the Turkish lira has crashed almost 170% to stand at a record low of 23.60 against the US dollar on Thursday.

Persons: Recep Tayyip Erdogan, Hafize Gaye Erkan, Goldman Sachs, Erdogan, Erdogan —, —, Mehmet Simsek, Turkey’s, Merrill Lynch Organizations: London CNN

The central bank said inflation will come under further pressure. Erdogan said last week he approved the steps Simsek would take with the central bank, suggesting he had given the green light to rate hikes. The central bank's key rate remains below deposit rates that reach up to 40% and real rates are still deeply negative. The central bank's net reserves fell to a record low of negative $5.7 billion last month. Authorities hope foreign investors and hard currency will return after a years-long exodus, potentially reducing the central bank's need to intervene to keep the lira stable.

Persons: Tayyip Erdogan's, Hafize Gaye Erkan, Erkan, Erdogan, Mehmet Simsek, Piotr Matys, Ezgi Erkoyun, Ali Kucukgocmen, Christina Fincher, Daren Butler Organizations: Reuters Graphics, Wall Street, InTouch, Reuters, Thomson Locations: ISTANBUL, Ankara

☆ Turkish central bank to hike rates sharply in post-election pivot
▼ + stars: | 2023-06-21 | by ( Ali Kucukgocmen | ) www.reuters.com time to read: +4 min

But the level remains uncertain as the central bank has not given any signals as to its next steps, including the size or pace of potential hikes. Some economists have expressed doubt about Erdogan's commitment to abandoning his unorthodox policy of low rates, which led the central bank to slash its policy rate from 19% in 2021 to 8.5% currently. The median estimate for the policy rate at end-2023 was 30%, with forecasts ranging from 18% to 35%. He named Naci Agbal as central bank governor in Nov. 2020 but, after some sharp rate hikes, replaced him less than five months later. The central bank is scheduled to announce its rate decision at 1100 GMT on Thursday.

Persons: Murad Sezer, Tayyip Erdogan, Hafize Gaye Erkan, Malek Drimal, Erdogan, Mehmet Simsek, Moody's, Naci, Simsek, Ali Kucukgocmen, Marc Jones, Jonathan Spicer, Daren Butler, Christina Fincher Organizations: REUTERS, Societe Generale, stoke, Thomson Locations: Istanbul, Turkey, ISTANBUL

☆ Turkey lifts minimum wage by 34% to address inflation
▼ + stars: | 2023-06-20 | by ( ) www.reuters.com time to read: +1 min

ANKARA, June 20 (Reuters) - Turkey raised monthly minimum wage by another 34% beginning on July 1, the government said on Tuesday, bringing it to a net 11,402 lira ($483) for the second half of the year in an effort to address soaring inflation. "The minimum wage assessment commission completed its work with an agreement between the workers and employers," Labour Minister Vedat Isikhan said in announcing the decision. Inflation is well above the official 5% target and touched a 24-year peak of 85.5% in October, prompting Ankara to raise the minimum wage by 100% over the course of last year. Annual inflation dipped to 39.6% in May as the government provided natural gas free of charge, offsetting price rises in other goods. The central bank is holding its policy-setting meeting on Thursday and is expected to start ramping up its rate from 8.5% currently.

Persons: Vedat Isikhan, stoked, Tayyip Erdogan, Mehmet Simsek, Hafize Gaye Erkan, Huseyin Hayatsever, Daren Butler, Jonathan Spicer Organizations: Labour, Thomson Locations: ANKARA, Turkey, Ankara

☆ Take Five: Keep calm and raise rates
▼ + stars: | 2023-06-16 | by ( ) www.reuters.com time to read: +5 min

June 16 (Reuters) - The Bank of England is facing a stormy gilts market while Turkey's new governor is expected to ramp up rates sharply at central bank meetings in the week to come. Markets show traders are placing an almost one-in-five chance the BoE will raise rates by half a point next week, up from near zero at the start of June. Reuters Graphics2/ECONOMIC CHECK UPA raft of decidedly hawkish noises from big central banks - including the Fed - has once again raised questions about how much central bank tightening is accelerating a global slowdown. U.S. manufacturing contracted for a seventh straight month, as new orders continued to plummet amid higher interest rates. May's blockbuster employment report could also provide more leeway for the RBA to tighten rates further.

Persons: Antony Blinken, Kevin Buckland, Lewis Krauskopf, Amanda Cooper, Karin Strohecker, BoE, confab, Philip Lowe, Ajay Banga, Hafize Gaye Erkan, Tayyip Erdogan, Erdogan, Mehmet Simsek, Philippa Fletcher Organizations: Bank of England, U.S, Reuters, Reserve Bank of, Investors, Ukraine, Conference, New, Pact, World Bank, Thomson Locations: Beijing, London, Paris, Tokyo, New York, United States, Europe, Japan, U.S, Australia, China, Dnipro, Ukraine

☆ Erdogan sees swift steps from new finance minister but says his own monetary views unchanged
▼ + stars: | 2023-06-14 | by ( ) www.reuters.com time to read: +3 min

"Some of our friends should not be mistaken, such as (asking) 'Is our president going for a serious change in interest rate policies?'" "But upon the thinking of our treasury and finance minister, we have accepted that he will take steps swiftly, comfortably with the central bank," Erdogan said. Analysts at leading investment banks now expect Turkey's central bank to start ramping up rates at its monetary policy committee meeting on June 22. Erdogan said he told the new central bank governor about his expectations. "God willing, neither our finance minister nor our central bank governor will embarrass us and I think we will hopefully obtain positive results."

Persons: Erdogan, Tayyip Erdogan, Mehmet Simsek, Hafize Gaye Erkan, Simsek, Orhan Coskun, Nevzat Devranoglu, Huseyin Hayatsever, Ali Kucukgocmen, Daren Butler, Peter Graff Organizations: stoke, Authorities, Wall Street, Toksabay, Thomson Locations: ANKARA, Azerbaijan, Turkish, Ankara

☆ Turkey's Erdogan says he agrees to monetary policy turnaround under new Finance Minister Simsek
▼ + stars: | 2023-06-14 | by ( Natasha Turak | ) www.cnbc.com time to read: +2 min

Turkey's President Recep Tayyip Erdogan has named former economy chief Mehmet Simsek as his new treasury and finance minister. Turkish President Recep Tayyip Erdogan on Wednesday appeared to make a crucial shift regarding the future of his inflation-ridden country's monetary policy. Newly appointed Finance Minister Mehmet Simsek, who previously served as deputy prime minister and finance minister between 2009 and 2018, is widely respected by investors. The president was referring to his opposition to raising interest rates, which he said was not changed. "But upon the thinking of our treasury and finance minister," Erdogan added, "we have accepted that he will take steps swiftly, comfortably with the central bank."

Persons: Recep Tayyip Erdogan, Mehmet Simsek, Erdogan Locations: Turkey

"It is clear that to ensure economic confidence, legal consistency is a must," one of the senior officials said. Deniz Ozen, lawyer for the Turkish Workers' Party MP, said authorities are violating Turkish law by keeping him in jail. Emma Sinclair-Webb, Turkey director of Human Rights Watch, said a discredited justice system is a matter of concern especially for European investors. Reinforcing the apparent U-turn, Erdogan on Friday named Hafize Gaye Erkan as central bank governor, paving the way for interest rate hikes. "No matter the economic reforms, the investment will not significantly ramp up," he said.

Persons: Erdogan, Tayyip Erdogan, Mehmet Simsek, Simsek, Mehmet Gun, Orhan Turan, Turkey's, Osman, Deniz Ozen, Emma Sinclair, Hafize Gaye Erkan, Howard Eissenstat, Burcu Karakas, Jonathan Spicer, Catherine Evans Organizations: Better Justice Association, Istanbul Convention, Gazette, Bank, AK Party, of Human, Human Rights, Turkish Workers ' Party, Finance, St, Lawrence University, Thomson Locations: ISTANBUL, Turkey, Istanbul, Osman Kavala, Kavala, Webb

☆ Morning Bid: Fresh lira low, focus on Fed
▼ + stars: | 2023-06-09 | by ( ) www.reuters.com time to read: +3 min

A look at the day ahead in European and global markets from Kevin BucklandAnother day, another market-positive appointment from Turkish President Tayyip Erdogan, and yet, another record low for the lira. Erdogan is making all the right noises to signal a return to more orthodox policy, picking U.S. banking executive Hafize Gaye Erkan as head of the central bank. Even so, the lira is seemingly in freefall, reaching an unprecedented 23.54 per dollar in Asian hours and extending this month's drop to 12%. ECB Vice President Luis de Guindos has a chance to air his views at an event in Madrid. Reuters GraphicsKey developments that could influence markets on Friday:Sweden GDP and industrial productionItaly industrial outputECB Vice President Luis de Guindos speaks at conference in MadridReporting by Kevin Buckland; Editing by Edmund KlamannOur Standards: The Thomson Reuters Trust Principles.

Persons: Kevin Buckland Another, Tayyip Erdogan, Erdogan, Hafize Gaye Erkan, Mehmet Simsek, Rodrigo Catril, Luis de Guindos, Kazuo Ueda, Kevin Buckland, Edmund Klamann Organizations: Reuters Graphics Reuters, Federal Reserve, ECB, Bank of Japan, Fed, SEC, Reuters, Thomson Locations: freefall, Europe, Canada, Australia, Madrid, Sweden, Italy

☆ Turkey's Erdogan appoints a former Goldman executive as its new central bank chief
▼ + stars: | 2023-06-09 | by ( Lee Ying Shan | ) www.cnbc.com time to read: +1 min

Exterior of the Turkish Central Bank, known as Turkiye Cumhuriyet Merkez Bankasi in Ankara. Turkey's President Recep Tayyip Erdogan has appointed a former Wall Street banker Hafize Gaye Erkan as the country's new central bank governor — another move that could potentially mark a policy pivot away from economic unorthodoxy. Erkan, Turkey's first female central bank chief, was a former managing director at Goldman Sachs and co-CEO at First Republic Bank. She is also Turkey's fifth central bank governor in four years. The caveat would lie in how much autonomy the central bank could exercise, and to what extent —something that Demiralp says investors will have to wait and see.

Persons: Recep Tayyip Erdogan, Hafize Gaye Erkan, —, Turkey's, Goldman Sachs, Mehmet Simsek's, Selva Demiralp, Demiralp Organizations: Turkish Central Bank, Wall Street, First Republic Bank, Princeton, Koç University, CNBC Locations: Ankara, U.S, Istanbul

☆ Goldman Sachs: "Fully orthodox" policy maker could raise Turkey rates to 40%
▼ + stars: | 2023-06-09 | by ( ) www.reuters.com time to read: +1 min

The Wall Street bank, in an overhaul to a number of its forecasts for Turkey, said stabilising the economy "will require a large, and we think discontinuous, adjustment to the exchange rate." While guidance was for the monetary policy framework was still missing at this stage, the bank noted, a "fully orthodox policy-maker" would allow the exchange rate to adjust upfront and would raise the repo rate to a level where it anchored interest rates in the economy. "In our view, this suggests that an orthodox policy-maker would raise rates to 40%, the current level of deposit rates," Clemens Grafe said in a note to clients. Grafe added that once the exchange rate and inflation expectations stabilised, rates could be lowered quickly, possibly to 25% by end-year. Goldman Sachs also cut Turkey's GDP forecast to 2.3% year-on-year in 2023, from previously 2.9%.

Persons: Goldman Sachs, Mehmet Simsek, Hafize Gaye Erkan, Clemens Grafe, Grafe, Karin Strohecker, Dhara Organizations: Thomson Locations: Turkey

The currency later recouped some of its losses, standing at 23.33 against the dollar by 0542 GMT, after touching a record low of 23.39 overnight during illiquid trading hours. "There is no air of panic in the markets as in previous times when there were such high losses. The central bank's net forex reserves hit an all-time low of negative $4.4 billion last month as demand surged through the elections. Investors are now awaiting the appointment of a new central bank governor to succeed Sahap Kavcioglu, who has spearheaded Erdogan's rate-slashing drive since 2021. Erdogan is considering appointing Hafize Gaye Erkan, a U.S.-based senior finance executive, as central bank governor, Reuters reported on Monday.

Persons: Tayyip Erdogan's, Erdogan, Mehmet Simsek, Simsek, Erik Meyersson, SEB, Meyersson, Sahap Kavcioglu, Hafize Gaye Erkan, Ali Kucukgocmen, Jonathan Spicer, Gareth Jones Organizations: Lira, Reuters, Thomson Locations: ISTANBUL, Ankara, U.S

☆ Goldman Sachs expected the Turkish lira to plunge over 3 months. It happened in just 3 days
▼ + stars: | 2023-06-08 | by ( Lee Ying Shan | ) www.cnbc.com time to read: +1 min

The Turkish lira has extended its post-election freefall this week, already surpassing a Goldman Sachs forecast for a significant weakening of the currency over the next few months. The U.S. investment bank at the weekend projected that the lira still had room to plunge further to deeper lows: to 23 against the greenback in three months, compared to a previous estimate of 19 against the dollar. Around the time of the report's release, the embattled currency was trading just above 20 to the dollar. But it has since weakened sharply — past Goldman's forecast to stand above 23 against the dollar — all within the span of a few days. The lira was last trading at a fresh all-time low of 23.29 against the greenback on Thursday afternoon.

Persons: Goldman Sachs, Mehmet Simsek Locations: U.S

The central bank's first female governor, Erkan is also its fifth chief in four years, underlining the challenge she may face delivering a lasting policy turnaround after Erdogan has all but stamped out the bank's independence in recent years. Analysts now expect Turkey's central bank to hike interest rates to between 20% and 25% from 8.5% as soon as this month. ORTHODOX FINANCE MINISTERErdogan, a self-proclaimed "enemy" of interest rates, has pressed the central bank to deliver stimulus in recent years and has been quick to replace its governor. The central bank slashed its policy rate to 8.5% from 19% in 2021, leaving real rates deeply negative and the lira largely managed by dozens of regulations covering credit and foreign exchange. But the last central bank governor to raise rates, Naci Agbal, was fired in 2021 after less than five months on the job.

Persons: Tayyip Erdogan, Hafize Gaye Erkan, Goldman Sachs, Erdogan's, Erdogan, Kavcioglu, Selva Demiralp, Mehmet Simsek, Simsek, Erkan, Naci Agbal, Marsh, Kathryn Wylde, Wylde, Ali Kucukgocment, Jonathan Spicer, Daren Butler, Cynthia Osterman, Hugh Lawson Organizations: Lira, First Republic Bank, Official Gazette, Koc University, U.S . Federal Reserve, Princeton University, First, JPMorgan, Analysts, FINANCE, Greystone, Partnership, New, Thomson Locations: ISTANBUL, United States, unorthodoxy, Erkan, U.S, New York City

☆ What Turkey’s new cabinet says about where the country is headed
▼ + stars: | 2023-06-07 | by ( Gul Tuysuz | ) edition.cnn.com time to read: +8 min

The cabinet appointments hint at a return to orthodox economic policy while holding course on foreign policy as the president heads into his third decade in power. Erdogan’s unorthodox economic policies over the past few years have led to a cost-of-living crisis and a plummeting Turkish lira. Shadow diplomatThe new foreign minister is a well-known figure to Turks and international players who have negotiated with Turkey of late. Hakan Fidan, who had served as head of Turkish Intelligence Agency (MIT) since 2010, has been in every room and every discussion that has been pivotal to Turkish foreign policy over the last few years. He’s been ever-present but rarely heard – a shadow diplomat in Erdogan’s foreign policy arsenal who has charted rough waters in Syria, Libya and beyond.

Persons: Recep Tayyip Erdogan, Mehmet Simsek, –, Nureddin Nebati, ” Simsek, Erdogan, Simsek, Mehmet Celik, Cevdet Yilmaz, Omer Bolat, ” Celik, Hakan Fidan, He’s, Fidan, Ibrahim Kalin, “, ” Fidan, ”, Suleyman Soylu, Istanbul Ali Yerlikaya, Hulusi Akar, Mevlut Cavusoglu, They’ve Organizations: Istanbul CNN —, Reuters, Daily, Trade, CNN, NATO, Turkish Intelligence Agency, MIT, Kurdistan Workers ’ Party, EU, Defense, Development Party, AK Party Locations: Istanbul, Turkish Republic, Turkish, “ Turkey, Daily Sabah, Turkey, Syria, Libya, Greece, West, Celik, Damascus, Ankara, Sweden, Yerlikaya

☆ Turkish lira crashes as new government sets sights on ‘rational’ policies
▼ + stars: | 2023-06-07 | by ( ) edition.cnn.com time to read: +3 min

Markets are also waiting for the appointment of a new central bank governor to replace Sahap Kavcioglu, who spearheaded interest rate cuts under Erdogan’s unorthodox policies. Bankers say the lira’s continued gradual depreciation will lead to improved market conditions and halt a decline in central bank reserves. But it sparked a record lira crisis in 2021 and sent inflation to a 24-year high above 85% last year. Erdogan is considering appointing Hafize Gaye Erkan, a senior finance executive in the United States, as central bank governor, Reuters reported Monday. Erkan would be the country’s fifth central bank chief in four years, after Erdogan fired previous governors as part of frequent policy shifts.

Persons: Tayyip Erdogan, Erdogan, Mehmet Simsek, Simsek, Sahap Kavcioglu, ”, Tim Ash, “, Hafize Gaye Erkan, Erkan, Paul McNamara Organizations: BlueBay Asset Management, Bankers, Reuters, Simsek, GAM Locations: Turkish, United States, Ankara, Turkey

☆ Morning Bid: Fearless VIX, China miss, Canada hike?
▼ + stars: | 2023-06-07 | by ( ) www.reuters.com time to read: +4 min

Wall St's 'fear index', the VIX (.VIX) gauge of implied S&P500 equity volatility, closed below 14 on Tuesday for the first time since February 2020 - more than 5 points below its 33 year average. What's more, the OECD saw Fed rates peaking after just one more hike to the 5.25-5.5% range and "modest" cuts next year. Oil prices remain lower on the week despite new Saudi output cut plans and year-on-year prices are still falling at 36%. Events to watch for later on Wednesday:* Bank of Canada key policy interest rate announcement* U.S. April trade balance. Federal Reserve issues Consumer Credit report for April* Britain's Prime Minister Rishi Sunak travels to Washington to meet with U.S. President Joe Biden* U.S. corporate earnings: Campbell Soup, Brown-FormanReuters GraphicsReuters GraphicsReuters GraphicsReuters GraphicsBy Mike Dolan, Editing by Louise Heavens <a href="mailto:mike.dolan@thomsonreuters.com" target="_blank">mike.dolan@thomsonreuters.com</a>.

Persons: Mike Dolan, you'd, eked, Tayyip Erdogan, Mehmet Simsek, Rishi Sunak, Joe Biden, Campbell, Brown, Forman, Louise Heavens Organizations: U.S, Organisation for Economic Cooperation, Development, World Bank, OECD, Bank of Canada, Canadian, Bank of, Federal, Britain's, Forman Reuters Graphics Reuters, Reuters, Thomson Locations: U.S, York, Saudi, Asia, Bank of Canada, Washington

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