Turkish Central Bank reports record losses following “the world’s most expensive economic experiment”
Turkey’s central bank (TCMB) recently announced record losses of 818.2 billion Turkish Liras for 2023. Economists who spoke to Birgün newspaper attributed the losses to the central bank’s protected deposit policy, instituted in late 2021 to slow soaring inflation of the Lira. Protected deposit payments Turkey has suffered persistent inflation since 2018. December 2021 saw a notable crisis when […]
Economist Daron Acemoğlu criticizes Turkish Central Bank inflation numbers as ‘unrealistic’
Massachusetts Institute of Technology (MIT) economics professor Daron Acemoğlu spoke to Reuters last week regarding inflation figures announced by Turkey’s Central Bank (TCMB) for February, as well as their projections for the remainder of 2024, describing the numbers as ‘unrealistic’. The numbers released by Turkey’s central Bank at the end of February forecast inflation peaking at […]
Turkey’s inflation rate nears 65%
© Agence France-Presse Turkey’s annual inflation rate approached 65 percent in December, reaching a new high for 2023 and putting the country on course to meet an expected peak of 70-75 percent in May. President Recep Tayyip Erdogan’s new team of market-friendly economists expects inflation to start falling from near record highs within four months. […]
Turkey’s central bank delivers smaller rate hike
Turkey’s central bank announced a smaller interest rate hike than in previous months on Thursday, signalling it is nearing the end of its monetary tightening as it battles double-digit inflation. The bank lifted its policy rate by 2.5-percentage-points to 42.5 percent. This compares to five-point hikes in previous months. The bank said it reduced the […]
Turkish Central Bank’s recent decision to raise interest rates attracts interest from foreign investors
Last week, Turkey’s Central Bank (TCMB) announced an interest rate hike from 17.5% to 25%, in a move seen by many as a piece of a return to economic orthodoxy following President Recep Tayyip Erdoğan’s victory in May’s elections. Aimed at curbing runaway inflation of the Turkish Lira, last week’s rate hike was the third such increase since June. […]
Turkish regulatory agency announces new restrictions on credit card payments for international purchases
Turkey’s Banking Regulation and Supervision Agency (BDDK) announced late Monday (July 31) new restrictions on credit card purchases aimed at ‘strengthening financial stability’. The restrictions announced Monday by the agency indicate that deferred monthly payment plans will no longer be available for purchases such as airline tickets, services at travel agencies, or accommodation made overseas. Announcing […]
Turkish Central Bank raises interest rate from 8.5% to 15%
For the first time in 27 months, Turkey’s central bank has raised interest rates. The 6.5% increase marks the first time the bank has done so under the tenure of Hafize Gaye Erkan, the new bank minister who took office less than two weeks ago. Although the first in over two years, the rate increase […]
Who is Turkey’s new Central Bank Governor?
After securing a 3rd decade in office after last month’s elections, President Erdoğan has been implementing a major restructuring in key government positions. One of the most notable of which has been the appointment of the new Central Bank governor Hafize Gaye Erkan. Erkan will serve as the 26th governor and the 4th appointee in […]
Erdoğan’s idiosyncratic economic policies under the microscope following Lira’s historic crash
by Leo Kendrick Last week’s dramatic crash of the Turkish Lira, in which it reached a record low 13.44 to the dollar before recovering slightly to below 13, has brought President Recep Tayyip Erdoğan’s unconventional fiscal policies back into public focus, with economic experts weighing in on the president’s approach while opposition politicians were quick […]
This Week in Turkey (239): Esra Aygın on the TRNC Scandal
Tonight: We have a political crisis of a salacious nature in Northern Cyprus and we will have journalist Esra Aygın to comment. The European Commission releases their latest report on Turkey, 10 foreign embassies call for Osman Kavalas release, President Erdoğan’s African tour and the interest rates are cut again.
Erdoğan shakes up Central Bank management as Lira hits record lows against Dollar
by Leo KendrickAfter passing the 9.1 milestone on Monday, the Turkish Lira’s value against the United States Dollar continued to plummet early Thursday, reaching a record 9.19 against the greenback. This drop followed a meeting late Wednesday between President Recep Tayyip Erdoğan and Central Bank governor Şahap Kavcıoğlu. A decision to fire several senior members of […]
This Week in Turkey (215): with Prof. Öner Günçavdı on the Central Bank’s reserves
This Week in Turkey’s guest was Prof. Öner Günçavdı, member of faculty at the Department of Management Engineering, Istanbul Technical University. Prof. Günçavdı assessed the implications of the disappearance of 128 billion dollars from the Central Bank’s foreign exchange reserves.
