The Central Bank’s Monetary Policy Committee (PPK) surprisingly cut the interest rate by 100 basis points to 12%. Thus, the bank reduced the policy rate for the second consecutive month. TRY touched a record 18.42 versus the USD, surpassing the level reached during a full-blown currency crisis last December. It edged back to 18.36 following...
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Central Bank cuts interest rate by another 100 basis points
Short-term foreign debt at USD 132bn in March
Turkey’s short-term foreign debt stock amounted to USD 132bn as of the end of March, according to the Central Bank. The external debt due to be paid over the next 12 months jumped 9.9% from the end-2021, the bank said in a statement. In this period, lenders’ short-term external debt stock increased 6.9% to USD...
Central Bank revises reserve requirement regulation
The Central Bank has revised its reserve requirements regulation in a move to strengthen the macroprudential policy toolkit. Reserve requirements, which used to only be applied to the liability side of balance sheets, will now be applied to asset sides as well, the bank said in a statement. TRY-denominated commercial cash loans given by lenders...
Meaningful support to export investments
BY BADER ARSLAN Despite high price increases and the growing current account deficit, the Turkish economy is ending a quarter in which exports contributed significantly to industrial production and growth. Yes, a significant part of the first quarter performance, which exceeded 20 percent for exports, is due to global price increases and the growth of...
Interest rate remains steady
The Central Bank kept the policy rate steady at 14% at the Monetary Policy Committee (PPK) meeting in line with the market expectations. The expression that the Committee decided to strengthen the macroprudential policy set was added to the PPK’s statement. In a statement, the bank pointed out that rising energy costs resulting from geopolitical...
Ruble and tourism
BY FEHMI KOFTEOGLU Trade with the national currency has been discussed for a few years globally and in Turkey. Discussions and preparations have accelerated with the sanctions levied by the U.S. and the European Union on Russia due to the Russia-Ukraine war. While central banks of the countries work on the infrastructure, the possible reflections...
Current account deficit at USD 5.15bn in February
Turkey’s current account balance registered a USD 5.15bn deficit in February, widening USD 2.71bn year-on-year, according to the Central Bank The bank said the country’s 12-month rolling deficit stood at USD 21.84bn in February. Goods trade deficit rose USD 3.9bn annually to reach USD 6bn. Services item showed a net surplus of USD 1.61bn, increasing...
Hike in inflation expanded across subgroups: Central Bank
The prices of energy, food, and basic products made the most significant contributions to the surge in inflation in March, according to the Price Developments Report, prepared by the Central Bank. The report, where the bank interpreted March inflation data, also found that the increase in commodity prices has been exacerbated by geopolitical developments. Here...
Inflation breaks another record
The annual inflation rate jumped to 61.14% while consumer prices climbed by 5.46% in March, according to the Turkish Statistical Institute (TurkStat). Thus, the annual inflation has seen its highest level since 2001. The core inflation, meanwhile, rose from 44.1% to 48.4% last month. The domestic producer price index (D-PPI) increased month-over-month by 9.19% to...
Terms of trade skydive
BY BESTENIGAR KARA The overall export unit value index (UVI) increased by 6.5% and the overall import UVI jumped 42.7% in January, compared to the same month last year, according to the Turkish Statistical Institute. The overall export UVI for food increased 5.1%, for beverages and tobacco by 21.4%, for crude materials (except fuels) by...