With inflation in Turkey galloping at 83 percent in September, the country’s central bank cut its key interest rate from 12 percent to 10.5, adhering to Turkish president Recep Erdogan’s insistence that low interest rates reduce inflation.
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ONLY IN TURKEY: INFLATION RISES, INTEREST RATES FALL
Despite inflation edging above 80 percent in August, Turkey’s central bank cut its benchmark one-week repo rate last week from 13 percent to 12. The country’s lira currency took yet another step down after the announcement, to 18.387 against the dollar. The lira has lost almost a third its value against the greenback so far...
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INFLATION IN TURKEY PASSES 80 PERCENT
Turkey’s inflation rate clocked in at 80.2 percent in August, rising from 79.6 percent in July to reach its highest level since 1998, according to the government’s Turkish Statistical Institute. However, a consumer price index kept by the Istanbul Chamber of Commerce in the country’s largest city showed an annual growth rate of almost 100...
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TURKEY’S ERDOGAN AGREES WITH PUTIN THAT GRAIN SHIPMENTS WENT TO RICH COUNTRIES, F.U. AFRICA
Recep Tayyip Erdoğan, the Turkish prime minister, repeated Russian President Vladimir Putin’s claim that the much-need grain shipments out of Ukraine were largely sent to wealthy countries. Putin said earlier this month that just seven out of 87 ships hauling 60,000 metric tons of grain were sent to poor countries. “What we are seeing is...
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WITH INFLATION NEARING 80 PERCENT, TURKEY CUTS INTEREST RATES—AGAIN
Responding to July’s inflation rate of 79.6 percent, Turkey’s central bank cut its key interest rate from 14 to 13 percent last week. Analysts had expected the bank to leave the rate untouched at 14 percent. “Leading indicators in the third quarter point to some loss of momentum in economic activity,” the bank said in...
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INFLATION IN TURKEY: 80 PERCENT AND RISING
In July, inflation in Turkey edged up to 79.6 percent from 78.6 percent in June and has further to climb, Bloomberg reported. In Istanbul, the country’s most populous city, prices in July virtually doubled over the past 12 months, notching a 99-percent gain. Turkey’s central bank now says inflation will peak at 85 percent in...
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TURKEY ADOPTS NEW MEASURE TO RESCUE THE LIRA
The Turkish government has announced a new “revenue-indexed” savings bond in an attempt to salvage the value of the lira, its failing national currency. (See “Turkey’s Economy Weakens Further Under Erdogan’s Policy” in this issue.) Officials have given few details about the new bond, other than to say that it will offer a guaranteed minimum...
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TURKEY’S ECONOMY WEAKENS FURTHER UNDER ERDOGAN’S POLICY
For more than a year, Turkey’s banks have spent billions of dollars and other foreign currencies to buy lira and shore up the value of its weakening currency. However, that strategy seems to have run out of power as the lira continues to lose value, The Wall Street Journal reported. On 13 June, the lira...
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TURKEY HEIGHTENS SCRUTINY OF FOREIGN CURRENCY TRANSACTIONS
Turkey’s central bank is scrutinizing corporate transactions involving foreign currency in amounts as small as $1 million in an attempt to crack down on sales of the lira, Turkey’s national currency. As inflation accelerated, investors sold lira and bought dollars, euros and other hard currencies. Eventually, the lira fell 45 percent against the dollar and...
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WASHINGTON WANTS TO RAMP UP WEAPON SALES TO TURKEY
The Biden administration wants to send Turkey advanced weapons for its F-16 fleet and new jets as Washington and Ankara try to mend ties after years of tension. The Wall Street Journal reported that the proposal calls for the shipment of 40 new F-16s to Turkey and other advanced weapons and equipment for its current fleet,...