BY ALAATTIN AKTAS The Central Bank’s (CB) balance of payments statistics show that a considerable amount of foreign exchange (FX) flowed to Turkey in April. The FX that entered Turkey was more than needed and the surplus added to the CB’s reserves. The current account deficit totaled USD 2.7bn in April. There was a higher...
Author: Alaattin Aktas (Alaattin Aktas)
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Is the market afraid of a super bond?
BY ALAATTIN AKTAS The recent developments seem to be similar to what happened in December 2021. But the market plays it safer this time as the market players and citizens haven’t forgotten the hit they took in December. Let’s remember what happened in December. The Central Bank cut the interest rate from 15% to 14%...
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1.40 points for the June inflation is taken for granted
BY ALAATTIN AKTAS I said that I wouldn’t estimate monthly inflation anymore. But that doesn’t mean that I won’t write about how monthly developments affect inflation. I described the night between May 31 and June 1 as the ‘black night’. Electricity and natural gas prices have highly been raised as of June 1, and diesel...
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How to read 14%?
BY ALAATTIN AKTAS Central Bank kept the policy rate steady at 14%. The interest rate will be THE implemented at this level for six months as it won’t be changed until the June meeting. Apparently, 14% has a charm! 19% and 14%… 19% was implemented for a long time last year. Now 14% has been...
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What happens when we run out of steam?
BY ALAATTIN AKTAS The country is at the end of its rope in terms of using foreign exchange reserves. It has opened a new era in economics with its monetary policy decisions. We’ve been on that road for a while… We have been trying to keep the exchange rate at certain levels by selling reserves...
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Domestic debt interest increased by TRY 1.3tr in five months: OPINON
BY ALAATTIN AKTAS The domestic debt has reached an incredible level and we do not know to what stage it will reach during the election period. We should ask all political parties: What kind of policy do you have, or do you have any policy on this issue? Of course, the AK Party is responsible...
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A new story should be written – but not a tall tale!
BY ALAATTIN AKTAS After the foreign exchange (FX) rates sharply increased, we created the FX-protected TRY deposit account (KKM), although it had “small problems” such as placing a big burden on the budget. And we simultaneously reduced FX rates by pressuring the market as much as possible with FX sales. The pressure was applied until...
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Interest payments on domestic debt exceeded principal amount
BY ALAATTIN AKTAS Foreign exchange (FX) rates, inflation, and interest rates for the Treasury’s borrowing jumped after the policy rate cuts. But the surge in the interest payment to be made by the Treasury on domestic debt has paved the way for a balance change. It has exceeded the principal amount. The Treasury will make...
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We almost started 2022 with a clean slate
BY ALAATTIN AKTAS The Consumer Price Index (CPI) rose by nearly 14% and exceeded 36% annually, while the domestic producer price index (D-PPI) surpassed 19% monthly and reached 80% annually in December 2021. So, how can we start 2022 with a clean slate? By stopping the foreign exchange (FX) rate increase and not changing the...
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When the first button is wired wrong…
BY ALAATTIN AKTAS The policy rate cuts were nothing but wiring the first button wrong. Inflation had to decline when the policy rate was reduced. But Turkey experienced inflation that hasn’t been seen for 20 years. Foreign exchange (FX) rates jumped when the policy rate was cut. The hike was stopped (for now) with a...