The Central Bank kept the policy rate steady at 14% at the first Monetary Policy Committee (PPK) meeting of the year in line with the market expectations. The economy world generally estimated no interest rate change as the Central Bank stated in the December PPK meeting that the cumulative impact of policy decisions would be...
Tag: Central Bank of the Republic of Turkey
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All eyes on Central Bank’s decision on interest rate
The Central Bank is set to announce its decision on the interest rate for the time this year, with analysts expecting no change in the key policy rate. All economists surveyed by Anadolu Agency predicted that the policy rate will be kept constant at 14%. Foreign financial institutions also expect the bank to keep interest...
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Turkish, UAE central banks ink a swap deal
Central banks of the United Arab Emirates (UAE) and Turkey signed a bilateral currency swap agreement. According to a statement by the Turkish Central Bank, the nominal size of the deal is mutually AED 18bn and TRY 64bn. The agreement aims to enhance bilateral trade and to further strengthen financial cooperation between the two countries....
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Should FX-protected TRY deposit accounts draw interest?
BY TALIP AKTAS How will the Treasury meet the cost if the Foreign Exchange (FX)-protected TRY deposit accounts draw interest within the next three months. The total deposit accounts hovered around TRY 5.19tr on January 1, according to the Central Bank. TRY 4.9tr is held by real and legal persons residing in Turkey. 60% of...
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Turkey’s inflation to drop to %27 by 2022 year-end: Reuters Poll
Already rampant inflation in Turkey will rise further in the coming months before declining to around 27% by the end of the year, a Reuters poll showed on Monday, as forecasts soared after a currency crisis in 2021 sent prices rocketing. Turkey’s inflation surged to 36% in December after a series of interest rate cuts...
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Short-term external debt stock up in November
The country’s short-term external debt stock surged by 8.6% to USD 124.1bn in November 2021, as compared to the end of 2020, according to the Central Bank. In this period, banks’ short-term external debt stock fell 6.7% to USD 53.5bn in the same period, while other sectors’ short-term external debt stock rose 25.4% to USD...
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Current account balance posts USD 2.68bn deficit in November
Turkey’s current account balance posted USD 2.68bn deficit in November, down USD 866m year-on-year, according to the Central Bank. Thus, the current account balance posted a deficit for the first time after three months. The current account balance was forecasted to post around USD 2.2bn deficit in November. The 12-month rolling current account deficit (CAD),...
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Card expenditures up due to inflation and TRY devaluation
BY SEBNEM TURHAN Turkey’s credit and debit card expenditures rose by 31.4% to TRY 213.6bn in December compared to November, according to the Central Bank. People’s grocery expenses surged by 38% to TRY 41.04bn and overall food spending increased by 37% in the same period. Skyrocketing inflation and the expectation that prices could increase at...
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Steve Hanke suggests currency board for Turkey’s high inflation
BY ELIF KARACA Steve Hanke, professor of applied economics at Johns Hopkins University, who is renowned for his scientific studies on hyperinflation, says that the probability of hyperinflation in Turkey is pretty low from a statistical point of view. “The prospect of hyperinflation in Turkey is not impossible. Turkey has an endemic ‘high’ inflation problem...
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Central Bank emphasizes ‘FX transitivity’
The developments in foreign exchange (FX) rates reflected on the increase in many items of inflation, while producer prices driven pressures were strongly felt as a result of TRY’s devaluation, according to the Central Bank’s price developments report about the outlook of inflation, which hit a 19-year high at 36.08% in December. The bank said...
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