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☆ 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'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

☆ Turkish cenbank data shows $3 bln inflow from abroad -bankers
▼ + stars: | 2023-06-08 | by ( Nevzat Devranoglu | ) www.reuters.com time to read: +1 min

ANKARA, June 8 (Reuters) - Turkish central bank reserves data shows inflows of about $3 billion into depo accounts last week from abroad, bankers said on Thursday. The central bank did not comment when asked about the matter by Reuters. Four bankers contacted by Reuters calculated that there was between $3 and $3.1 billion deposited into the accounts. Before being re-elected to office on May 28, Turkish President Tayyip Erdogan said Gulf states had sent funding to Turkey, briefly helping relieve the central bank and markets. The central bank's net international reserves hit an all-time low of negative $5.7 billion as of June 2, data showed on Thursday, with demand having surged through the elections.

Persons: Tayyip Erdogan, Erdogan, Nevzat Devranoglu, Daren Butler, Jonathan Spicer, Emelia Organizations: Reuters, United Arab, Ece, Thomson Locations: ANKARA, Turkish, Turkey, Ankara, United Arab Emirates, Qatar, China, South Korea

☆ 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

Markets are also waiting for the appointment of a new central bank governor to replace Sahap Kavcioglu, who spearheaded rate cuts under Erdogan's unorthodox policies. "I think we are seeing the impact of Simsek pushing (the Turkish central bank) for rational policy." 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 December of 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 on Monday.

Persons: Tayyip Erdogan, Erdogan, Mehmet Simsek, Simsek, Sahap Kavcioglu, Tim Ash, Hafize Gaye Erkan, Erkan, Paul McNamara, Huseyin Hayatsever, Jonathan Spicer, Ali Kucukgocmen, Tom Hogue, Christina Fincher Organizations: BlueBay Asset Management, Bankers, Reuters, Simsek, GAM, Thomson Locations: ANKARA, Turkish, United States, Ankara, Turkey, Jorgelina, Rosario, London

☆ Turkey election runoff 2023: what you need to know
▼ + stars: | 2023-05-28 | by ( ) www.reuters.com time to read: +6 min

[1/2] Women display flags with images of Turkish President Tayyip Erdogan next to an election campaign point, ahead of the May 28 presidential runoff vote, in Istanbul, Turkey May 25, 2023. Here is a guide to the runoff, the two candidates and the key issues as well as details on how the May 14 parliamentary election unfolded:PRESIDENTIAL VOTETurks will be electing a president for a five-year term. As president, Erdogan sets policy on Turkey's economy, security, domestic and international affairs. The ZP received 2.2% of votes in the parliamentary election. On foreign affairs, under Erdogan, Turkey has flexed military power in the Middle East and beyond, forged closer ties with Russia, and seen relations with the European Union and United States become increasingly strained.

☆ Erdogan's election lead leaves Turkey's opposition reeling and an economy on the brink
▼ + stars: | 2023-05-19 | by ( Natasha Turak | ) www.cnbc.com time to read: +9 min

Since neither candidate won more than 50% of the vote, however, the election will go to a runoff on May 28. They also reveal that despite Turkey's current economic turmoil, tens of millions of Turks still see Erdogan as their only viable leader. Supporters of Turkish President Recep Tayyip Erdogan celebrate at the AK Party headquarters garden on May 15, 2023 in Ankara, Turkey. Still, Kilicdaroglu's 44.9% of the vote is notable as the highest any opposition candidate ever received, said Orcun Selcuk, an assistant professor of political science at Luther College in Iowa, on Twitter. "The opposition clearly did not meet the expectations but it would be a misjudgment to say that opposition coordination failed.

☆ ANALYST VIEW Markets tumble as Turkey faces runoff election after Erdogan leads first round
▼ + stars: | 2023-05-15 | by ( ) www.reuters.com time to read: +6 min

[1/2] Supporters of Turkish President Tayyip Erdogan wave flags outside the AK Party headquarters, in Ankara, Turkey May 15, 2023. DEBT: Five-year credit default swaps jumped over 100 basis points from Friday and dollar bonds fell more than 7 cents. STOCKS: Borsa Istanbul issued a market-wide circuit breaker after the benchmark index (.XU100) dropped 6.38% in pre-market trading and was last down 2.7%. PIOTR MATYS, SENIOR FOX ANALYST, IN TOUCH CAPITAL MARKETS, POLAND:"When/if President Erdogan is re-elected, the lira should be trading far more freely. CLEMENS GRAFE AND BASAK EDIZGIL, GOLDMAN SACHS, LONDON:"The (rates and CDS) market dynamics post the initial move will be dependent on the FX market.

☆ Can Gulf money save Turkey's economy?
▼ + stars: | 2023-05-11 | by ( Idil Karsit | ) www.cnbc.com time to read: +1 min

Turkey has become a top destination for wealthy Gulf tourists injecting much-needed dollars into the country's economy. Between 2016 and 2019, Qatar increased its investments in Turkey by nearly 500%, replacing countries like Germany and Russia as its second largest foreign direct investor. Gulf states offered relief, either in the form of currency swap lines or direct deposits. It borrows money from the so-called friendly countries to finance its short-term capital needs. Watch the video above to understand why Turkey needs Gulf money.

☆ Analysis: In Turkey, an election reckoning for the rise and fall of Erdogan's economy
▼ + stars: | 2023-05-08 | by ( Jonathan Spicer | ) www.reuters.com time to read: +8 min

The May 14 vote, which lands during the Turkish Republic's centenary year, is Erdogan's biggest test yet. At the same time, a global reversal in market liquidity left Turkey and other emerging markets starved for funding. But the economic crisis was damaging. This trend accelerated in 2013, wiping out big gains made in 2006-2010 during Erdogan's first decade in charge. "If Erdogan wins the election and continues his economic policy it will come to a complete crash at one point.

☆ Factbox: In Middle East, once improbable ententes set new tone
▼ + stars: | 2023-04-06 | by ( ) www.reuters.com time to read: +6 min

Some U.S. allies had concluded their interests are not best served by a highly polarised Middle East, he added. The agreement between leading Sunni Arab power Saudi Arabia and the Shi'ite Islamist government in Tehran could defuse tensions and conflicts such as the Yemen war. Saudi Arabia has turned to China at a time of strain in its historic alliance with the United States. Saudi Arabia took the lead in rebuilding ties in 2021, declaring an end to the boycott of Qatar. Sources say Syria and Saudi Arabia have agreed to reopen embassies.

☆ Erdogan's AKP party signals return to more orthodox economic policies in draft election manifesto -sources
▼ + stars: | 2023-03-16 | by ( Orhan Coskun | ) www.reuters.com time to read: +5 min

ANKARA, March 16 (Reuters) - The draft election manifesto of Turkish President Tayyip Erdogan's AK Party marks a return to more orthodox, free market economic policies, four sources familiar with the matter told Reuters. According to the sources familiar with the draft, the AK's manifesto for the upcoming election will make no reference to Ankara's more recent economic policies but instead to return to his party's prior, more orthodox approach. "The approach to the economy is very similar to that of the 2002 AK Party election manifesto. He said Erdogan's final approval of the manifesto would be required and so far he had not conveyed any dissenting opinion. If he takes office, a radical change is inevitable in economic policies, the bureaucracy and cabinet members to work in harmony with him," the AKP official said.

☆ Erdogan's party pivots back to orthodox economic policies in draft manifesto -sources
▼ + stars: | 2023-03-16 | by ( Orhan Coskun | ) www.reuters.com time to read: +5 min

☆ Saudi Arabia deposits $5 bln in Turkey's central bank - statement
▼ + stars: | 2023-03-06 | by ( ) www.reuters.com time to read: +1 min

DUBAI, March 6 (Reuters) - Saudi Arabia has signed an agreement with Turkey to deposit $5 billion in the country's central bank through the Saudi Fund for Development (SFD), the fund said on Monday. Saudi Minister of Finance Mohammed Bin Abdullah Al-Jadaan announced his country's intention to make the deposit in December. The Turkish central bank's net international reserves fell some $1.4 billion to $20.2 billion in the week to Feb. 24, data from the bank showed on Thursday. The Saudi deposit follows joint efforts by Ankara and Riyadh to mend ties that were ruptured after the murder of Saudi journalist Jamal Khashoggi in 2018 at the kingdom's consulate in Istanbul. The deposit was signed between SFD Chairman Ahmed Aqeel Al-Khateeb, who is also Saudi Arabia's tourism minister, and Turkish Central Bank Governor Sahap Kavcioglu, the SFD statement said.

ISTANBUL, Feb 23 (Reuters) - Turkey's central bank lowered its policy rate by 50 basis points to 8.5% on Thursday, as expected, following a devastating earthquake that killed more than 43,000 people in southern Turkey this month. It said after its monthly monetary policy committee meeting that it will closely monitor earthquake driven supply-demand imbalances on inflation and stressed the importance of supporting economic growth and employment. Last year the bank cut its key rate by 500 basis points in an unorthodox easing cycle designed to counter an economic slowdown, before keeping it steady at 9% in December and January. In a Reuters poll of 17 economists, the median forecast was for a 50-basis-point cut to minimise the economic impact of the earthquake. Nine economists expected a cut in the policy rate of up to 200 basis points, while eight institutions expected the rate to be kept steady.

☆ Istanbul bourse rises nearly 10% after quake closure, govt measures
▼ + stars: | 2023-02-15 | by ( ) www.reuters.com time to read: +4 min

RAPID NEW REGULATIONSTurkish authorities pushed through new regulations including measures incentivizing company share buyback programs, and increasing obligatory pension fund allocation for stocks. The general assembly decision mandate for share buybacks was also waived, allowing listed companies to start share buyback programmes with just a management board decision. Additional measures could still be needed to stabilize the stock exchange, according to Tunc Satiroglu, strategist and founder of financial consulting firm Kanal Finans. The cancellations followed multiple market-wide circuit brakers in the two trading days following the earthquake, which failed to halt the slide to no avail. "I expect the stock market to be more stable...

Government bonds, which typically perform well when there is a dash for safe havens, sold off under intense pressure. The dollar rose to an almost one-month high of 132.85 yen while the euro fell 0.64% to $1.0726. Chinese equities fell on Monday, while the offshore yuan touched a one-month low against the dollar. European Central Bank and Bank of England policymakers will also be making appearances. Gold edged higher, with investors banking on the precious metal's safe-haven appeal as concerns about an economic slowdown linger.

☆ Turkish central bank includes other financial firms in securities regulation
▼ + stars: | 2022-12-31 | by ( ) www.reuters.com time to read: 1 min

ANKARA, Dec 31 (Reuters) - The Turkish central bank has included non-bank financial companies in securities maintenance regulations as part of its "liraization strategy" which will be introduced in the New Year. In addition to banks, other financial institutions - such as factoring companies which help firms manage their cash flow - were included in the regulations, according to the Official Gazette published on Saturday. "The securities maintenance practice ... will ensure a balanced course in FX loans in line with the decline in foreign currency funding items," the central bank said in a statement. Reporting by Nevzat Devranoglu; Writing by Huseyin Hayatsever; Editing by David HolmesOur Standards: The Thomson Reuters Trust Principles.

☆ Turkish cenbank's net FX reserves rise to $19.51 bln
▼ + stars: | 2022-12-01 | by ( ) www.reuters.com time to read: +1 min

ISTANBUL, Dec 1 (Reuters) - The Turkish central bank's net international reserves rose some $760 million to $19.51 billion in the week to Nov. 25, hitting their highest since mid-February, central bank data showed on Thursday. In July, the net forex reserves dropped to $6.07 billion, their lowest in at least 20 years, but since rebounded. Forex reserves have dropped sharply in recent years due to market interventions and in the wake of a currency crisis in December. Data showed the bank's outstanding swap transactions stood at $45.15 billion as of Wednesday. The figures are released in Turkish liras and are converted by Reuters to U.S. dollars using the central bank's official exchange rate from the previous work day.

"Talks for Qatar to provide new resources to Turkey have reached the final stage. The second Turkish official said the talks for $2-3 billion funding for this year were focused on the eurobond. Turkey's Finance Ministry has borrowed $9 billion in 2022, of the $11 billion foreign borrowing foreseen for the year. The ministry foresees $10 billion foreign borrowing for 2023 but it can bring forward its debt issuances when needed for earlier financing. Turkey is also in the final stage of talks with Saudi Arabia on Riyadh placing a $5 billion deposit at the Turkish Central Bank, a Saudi finance ministry spokesman said on Tuesday.

☆ Turkish central bank warns lenders against FX transactions during 'off hours,' other issues -letter
▼ + stars: | 2022-10-31 | by ( ) www.reuters.com time to read: +1 min

ANKARA, Oct 31 (Reuters) - Turkey's central bank sent a letter to local lenders on Monday, warning them against conducting forex transactions with foreign banks during "off hours" and offering deposits with very high interest rates to avoid bond holding requirements. The central bank has introduced rules in recent months to reduce the gap between the policy rate and lending rates and encourage loans to sectors including exports and production. Such issues are "not supportive of establishing financial stability," the central bank said, adding that lenders should make the maximum effort to abide by regulations. The central bank had already warned banks last week about conducting forex sale-purchase transactions overnight, saying it will take "necessary measures" if the issue continues. In the past, if central bank requests on various issues have not been followed, it has taken measures such as requiring banks to hold government bonds.

☆ Turkey received $28 billion from unclear origins in the first 8 months of the year, per the FT. The country's finance minister says some of it was legitimate cash from holidaying Russians.
▼ + stars: | 2022-10-25 | by ( Huileng Tan | ) www.businessinsider.com time to read: +2 min

From January to August, a record $28 billion from unclear origins trickled into Turkey, the FT said. Turkey's finance minister believes that unaccounted-for tourism revenues were a key part of such inflows. However, the inflows are all legitimate and legal, Nureddin Nebati, the Turkish finance minister said. Turkey's finance minister, however, has played down these concerns. Nebati told the FT Turkey and Russia's relationship are just "good neighbourly relations."

☆ Turkish central bank to cut rates to 11% after Erdogan nudge
▼ + stars: | 2022-10-14 | by ( ) www.reuters.com time to read: +3 min

ISTANBUL, Oct 14 (Reuters) - Turkey's central bank is expected to cut its policy rate by 100 basis points to 11% next week, a Reuters poll showed on Friday, after President Tayyip Erdogan called for more easing each month and said rates should be single digits by year-end. The central bank has shocked the markets twice in the past two months by cutting its policy rate (TRINT=ECI) by 100 basis points each time, lowering it to 12%, despite inflation soaring above 83% in September. Register now for FREE unlimited access to Reuters.com RegisterThe president, who has great influence over the central bank, gave even more explicit policy direction earlier this month when he said the bank would continue cuts every month "as long as I am in power". Thirteen out of 20 economists that participated in the Reuters poll predicted the bank would lower its policy rate to 11% at its meeting on Oct. 20. Inflation has surged since November 2021 after the central bank embarked on an easing cycle that saw rates lowered by 500 basis points between September and December last year.

☆ Turkey's Erdogan advises central bank to cut rates at upcoming meetings
▼ + stars: | 2022-09-29 | by ( ) www.reuters.com time to read: +2 min

Turkey's central bank cut its policy rate by 200 basis points to 12% in the last two months, delivering shocks to markets after inflation surged to 80% in August. The rate cuts are part of Erdogan's unorthodox policy of lowering rates to lower inflation. "We have discussed, are discussing this with our central bank. I suggested the need for this to come down further in upcoming monetary policy committee meetings," Erdogan added. On Wednesday, Erdogan said interest rates will come down to single digits by year-end, despite a global tightening cycle, an ailing currency and soaring energy prices.

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