Why Turkey’s currency is crashing after Erdogan got reelected
1 year, 6 months ago

Why Turkey’s currency is crashing after Erdogan got reelected

Associated Press  

ANKARA, Turkey — Turkish President Recep Tayyip Erdogan won reelection last month despite a battered economy and a cost-of-living crisis that experts say are exacerbated by his unconventional economic policies. But lingering uncertainty over Erdogan’s economic direction and an apparent move to loosen government controls of foreign currency exchanges have led Turkey’s currency to plunge to record lows against the U.S. dollar this week. Here’s a look at the falling value of the lira, what lies ahead for the economy and how people have been affected: ERDOGAN’S ECONOMIC POLICIES Turkey has been plagued by a currency crisis and skyrocketing inflation since 2021, which economists say are the result of Erdogan’s unorthodox belief that raising interest rates will increase inflation. Simsek said Turkey had no other option but to return to “rational ground.” In a sign that Erdogan’s new administration might pursue more conventional economic policies, Simsek also said there were no “shortcuts or quick fixes” but vowed to oversee Turkey’s finances with “transparency, consistency, accountability and predictability.” In another sign, Erdogan on Friday appointed Hafize Gaye Erkan to lead the central bank, taking over from the current chief who has championed rate cuts since 2021.

Turkey Bank Currency Central Turkish Rate Erdogan Usta Lira High Inflation Erkan Simsek Sengul  reelected  return  economic  turkeys  bank  say  erdogan  central  rate  crashing  currency  lira

History of this topic

Turkey’s new central bank chief assures that work to combat inflation will press on
10 months, 2 weeks ago

Turkey’s new central bank chief assures that work to combat inflation will press on

Associated Press  

ANKARA, Turkey — The work to tame inflation in Turkey — namely through interest rate hikes — will continue “with determination,” the country’s new central bank chief said Thursday, offering some certainty about efforts to right the battered economy following his precedessor’s surprise resignation. Speaking for the first time since taking the helm of the central bank on Saturday, Fatih …

Turkey’s central bank hikes key interest rate again to 45% to battle inflation
10 months, 4 weeks ago

Turkey’s central bank hikes key interest rate again to 45% to battle inflation

Associated Press  

ANKARA, Turkey — Turkey’s central bank raised its key interest rate by another 2.5 percentage points on Thursday, pressing ahead with a series of hikes aimed at combating inflation that reached nearly 65% in December. It’s the eighth interest rate hike since President Recep Tayyip Erdogan has abandoned his unconventional economic policies that economists say helped trigger a currency crisis …

Turkey’s central bank unleashes a big interest rate hike in another sign of an economic shift
1 year, 4 months ago

Turkey’s central bank unleashes a big interest rate hike in another sign of an economic shift

Associated Press  

ANKARA, Turkey — Turkey’s central bank raised its key interest rate by an aggressive 7.5 percentage points on Thursday, a larger-than-expected boost that offers a new sign of a return to more traditional economic policies under President Recep Tayyip Erdogan. The team includes former Merrill Lynch banker Mehmet Simsek, who returned as finance minister, a post he held until 2018, …

Turkey’s central bank sharply raises interest rates. That could signal an economic turnaround
1 year, 6 months ago

Turkey’s central bank sharply raises interest rates. That could signal an economic turnaround

Associated Press  

ANKARA, Turkey — Turkey’s central bank delivered a large interest rate hike Thursday, signaling a shift toward more conventional economic policies to counter sky-high inflation following criticism that President Recep Tayyip Erdogan’s approach has made a cost-of-living crisis worse. Simsek said soon after his appointment that Turkey had no other option but to return to a “rational ground.” In another …

Turkish leader says his economic views are same but he’ll accept finance minister’s approach
1 year, 6 months ago

Turkish leader says his economic views are same but he’ll accept finance minister’s approach

Associated Press  

ISTANBUL — Turkish President Recep Tayyip Erdogan said his economic policies have not changed but he suggested in comments published Wednesday that his finance minister will have leeway to move away from an unconventional approach that many have blamed for a worsening cost-of-living crisis. While the appointments signaled a shift in the longtime Turkish leader’s views on how to stimulate …

Erdogan’s new central bank chief signals hope for Turkey’s economic turnaround
1 year, 6 months ago

Erdogan’s new central bank chief signals hope for Turkey’s economic turnaround

Associated Press  

ANKARA, Turkey — Turkish President Recep Tayyip Erdogan appointed a former U.S.-based bank executive to head the central bank Friday, sending the strongest signal yet that the newly reelected leader might pivot from his unusual economic policies that many blame for worsening a cost-of-living crisis. The choices for two key financial roles have raised hopes that Erdogan, reelected last month …

After Turkey election win, what problems does Erdogan face next?
1 year, 6 months ago

After Turkey election win, what problems does Erdogan face next?

Al Jazeera  

Economic concerns and relations with the West lie at the top of Erdogan’s agenda after presidential run-off victory. “Despite the highest inflation we’ve seen in years, despite significant pressure on the lira, despite high unemployment and people’s concerns, winning the election he will feel quite vindicated,” Peker said. “The economy has relied on financing from Russia, investments from the Gulf …

Turkey’s lira hits record low, stocks rise after Erdogan’s win
1 year, 6 months ago

Turkey’s lira hits record low, stocks rise after Erdogan’s win

Al Jazeera  

The Turkish leader won the presidency for a third time after a run-off vote on Sunday. The Turkish lira plunged to record lows after the re-election of President Recep Tayyip Erdogan, a sign that currency markets are not confident in the country’s economic future after the longtime leader’s victory. But Turkish stocks, on the other hand, rose as Erdogan entered …

As Turkey heads to runoff presidential race, domestic issues loom large
1 year, 6 months ago

As Turkey heads to runoff presidential race, domestic issues loom large

Associated Press  

ANKARA, Turkey — Turkish President Recep Tayyip Erdogan, who has parlayed his country’s NATO membership and location straddling Europe and the Middle East into international influence, is favored to win reelection in a presidential runoff Sunday, despite a host of domestic issues. His challenger in the runoff is Kemal Kilicdaroglu, the 74-year-old leader of the main opposition social democratic Republican …

Tayyip Erdogan's administration divided on economic plan as Turkey runoff presidential elections loom, say sources
1 year, 6 months ago

Tayyip Erdogan's administration divided on economic plan as Turkey runoff presidential elections loom, say sources

Firstpost  

With foreign reserves tumbling, some analysts say Turkey could face another economic crash as soon as this year that sends inflation soaring again and strains its balance of payments - unless the government changes course Tayyip Erdogan’s administration is divided and unsure about its future direction, according to insiders, days before Turkey’s runoff presidential election. With foreign reserves tumbling, some …

How Turkey’s Strongman Keeps Winning
54 years, 11 months ago

How Turkey’s Strongman Keeps Winning

Slate  

Suzy Hansen loves Election Day in Turkey. “It was incredible.” All 600 members of Parliament were on the ballot this weekend, but this election was mostly seen as a referendum on one man: Turkey’s president, Recep Tayyip Erdogan. A lot of voters who might have been undecided or who voted for the third-party candidate might look at the situation right …

Turkish central bank cuts rates again despite high inflation
2 years, 1 month ago

Turkish central bank cuts rates again despite high inflation

Associated Press  

ANKARA, Turkey — Turkey’s central bank delivered another outsized interest rate cut Thursday despite inflation running at more than 85% and other countries moving the opposite way to ease the pain of soaring prices. The central bank said its Monetary Policy Committee decided to lower the benchmark policy rate by 1.5 percentage points to 9%, following a series of similar …

Turkish central bank makes huge rate cut amid 83% inflation
2 years, 2 months ago

Turkish central bank makes huge rate cut amid 83% inflation

Associated Press  

ISTANBUL — Turkey’s central bank has slashed interest rates for the third month in a row, making its biggest drop this year despite sky-high inflation that is squeezing people’s finances as it follows President Recep Tayyip Erdogan’s unorthodox economic views. “It is critically important that financial conditions remain supportive to preserve the growth momentum in industrial production and the positive …

Turkey launched an unusual experiment to fight inflation by cutting interest rates. This is how it spectacularly backfired
2 years, 4 months ago

Turkey launched an unusual experiment to fight inflation by cutting interest rates. This is how it spectacularly backfired

ABC  

While much of the world anxiously waits to see if central banks will keep raising interest rates to combat a post-pandemic surge in inflation, Turkey is bucking the global trend. He has fired three central bank governors in four years for attempting to raise interest rates, and described anyone who draws a link between rates and inflation as "illiterates and …

Turkey’s inflation rate soars to almost 70 percent
2 years, 7 months ago

Turkey’s inflation rate soars to almost 70 percent

Al Jazeera  

The consumer price index has risen by 69.97 percent year-on-year in April compared with 61.14 percent in March. Turkey’s official inflation rate has spiralled to nearly 70 percent in April, posing a huge challenge to President Recep Tayyip Erdogan, whose unconventional economic policies are often blamed for the economic turmoil. The consumer price index rose by 69.97 percent year-on-year in …

Turkey keeps interest rates unchanged despite surging inflation
2 years, 10 months ago

Turkey keeps interest rates unchanged despite surging inflation

Al Jazeera  

Turkey’s central bank held its benchmark interest rate steady for a second month running, even as inflation threatens Erdogan’s grip on power. Turkey’s central bank kept its benchmark interest rate unchanged for a second month on Thursday, as President Recep Tayyip Erdogan’s government struggles to contain price surges that could threaten his two-decade rule. Just ahead of Thursday’s decision, Erdogan …

Turkey’s central bank ends string of interest rate cuts
2 years, 11 months ago

Turkey’s central bank ends string of interest rate cuts

Associated Press  

ANKARA, Turkey — Turkey’s central bank kept a key interest rate unchanged on Thursday, halting a string of rate cuts that triggered a currency crisis and sent consumer prices skyrocketing. The bank’s Monetary Policy Committee said it decided to keep its policy rate “constant” at 14%, putting on hold a rate-cutting policy that has reduced borrowing costs by 5 percentage …

Turkey’s central bank hits pause, leaves interest rates unchanged
2 years, 11 months ago

Turkey’s central bank hits pause, leaves interest rates unchanged

Al Jazeera  

Turkey’s central bank voted to hit pause on an easing cycle that started in September and saw the lira crash. Turkey’s central bank has ended its latest policy-setting meeting by keeping interest rates unchanged, halting a cycle of cuts initiated last September that economists warned was plunging the country into a deep economic crisis and eroding confidence in the bank’s …

EXPLAINER: Are Turkey’s efforts to fix the economy working?
2 years, 11 months ago

EXPLAINER: Are Turkey’s efforts to fix the economy working?

Associated Press  

ANKARA, Turkey — Turkey’s government and central bank have taken unconventional steps in recent weeks to prop up a beleaguered economy crippled by skyrocketing consumer prices, instead of ending a much-criticized plan to cut interest rates. President Recep Tayyip Erdogan’s insistence on cutting rates — the opposite of what economists say to do to curb soaring inflation — has weakened …

Turkish lira rebounds after Erdogan vows to prop up deposits
3 years ago

Turkish lira rebounds after Erdogan vows to prop up deposits

Associated Press  

ISTANBUL — Turkey’s currency made significant gains Tuesday after President Recep Tayyip Erdogan announced extraordinary measures that aim to safeguard deposits in the lira against volatility seen in recent weeks and boost confidence among Turks as they have watched their buying power erode. The currency has been on a rollercoaster ride since the country’s Central Bank began lowering interest rates …

Turkey’s Erdogan announces moves to encourage lira savings
3 years ago

Turkey’s Erdogan announces moves to encourage lira savings

Associated Press  

ANKARA, Turkey — Turkish President Recep Tayyip Erdogan on Monday announced a series of measures to encourage lira-denominated savings, easing the pressure on the beleaguered Turkish currency. In a televised speech following a Cabinet meeting, Erdogan said the government would offer a new financial vehicle that would “alleviate” the concerns of citizens who have been buying foreign currency, fearing that …

Turkey’s lira sinks to new low, prompting bank to intervene
3 years ago

Turkey’s lira sinks to new low, prompting bank to intervene

Associated Press  

ANKARA, Turkey — Turkey’s currency crashed to an new all-time low against the dollar Friday, a day after the Central Bank again lowered a key interest rate despite surging consumer prices, a move in line with President Recep Tayyip Erdogan’s unconventional economic policy. The Central Bank announced Thursday announced that it was cutting the key interest rate from 15% to …

EXPLAINER: Turkey’s currency is crashing. What’s the impact?
3 years ago

EXPLAINER: Turkey’s currency is crashing. What’s the impact?

Associated Press  

ANKARA, Turkey — Turkey’s beleaguered currency has been plunging to all-time lows against the U.S. dollar and the euro in recent months as President Recep Tayyip Erdogan presses ahead with a widely criticized effort to cut interest rates despite surging consumer prices. Turkey’s Central Bank has cut borrowing costs by 4 percentage points since September, in line with Erdogan’s wishes, …

Explained: Why Turkey's lira is crashing and what it has to do with strongman Recep Tayyip Erdogan
3 years ago

Explained: Why Turkey's lira is crashing and what it has to do with strongman Recep Tayyip Erdogan

Firstpost  

The lira has lost more than 40 percent of its value against the dollar since the start of the year and the annual inflation rate has reached nearly 20 percent, quadruple the government’s target This week saw Turkey’s lira plunging as low as 14 to the US dollar and hitting fresh lows against the euro. Erdogan has already fired three …

Erdogan replaces finance minister as Turkey’s lira crashes
3 years ago

Erdogan replaces finance minister as Turkey’s lira crashes

Associated Press  

ANKARA, Turkey — Turkish President Recep Tayyip Erdogan appointed a new treasury and finance minister Thursday after the previous one stepped down as the country’s currency has tumbled to record lows. Erdogan strongly argues that high interest rates cause inflation — contrary to conventional economic thinking — and has made clear that the country would press ahead with rate cuts. …

Why is Turkey’s lira crashing and will currency crisis worsen?
3 years ago

Why is Turkey’s lira crashing and will currency crisis worsen?

Al Jazeera  

The lira lost nearly 30 percent of its value against the United States dollar in November. The lira’s recent troubles were triggered after Turkey’s central bank cut interest rates by a full percentage point on November 18 – the third cut since September – and signalled it would slash rates again in December. Yet the country’s benchmark interest rate currently …

Turkey’s central bank, banks discuss rates after lira tumble
3 years, 1 month ago

Turkey’s central bank, banks discuss rates after lira tumble

Al Jazeera  

Central Bank Governor Sahap Kavcioglu said after his meeting with top bankers and the country’s BDDK banking watchdog that the banking sector and all its actors ‘are very much in harmony’. Turkey’s central bank governor said he discussed recent interest rate cuts with bankers at a meeting on Thursday after a slide in the lira to record lows, and he …

Turkish lira plunges after Erdogan defends rate cuts
3 years, 1 month ago

Turkish lira plunges after Erdogan defends rate cuts

Associated Press  

ANKARA, Turkey — The Turkish currency weakened by some 10% against the U.S. dollar Tuesday, a day after President Recep Tayyip Erdogan insisted there would be no turning back from his unconventional policy of cutting interest rates despite high inflation. Erdogan, who had declared himself an “enemy” of high borrowing costs, portrayed his economic policies as “an economic war of …

Turkey’s lira hits record low after Erdogan defends rate cuts
3 years, 1 month ago

Turkey’s lira hits record low after Erdogan defends rate cuts

Al Jazeera  

Overall, the lira has lost nearly 40 per cent of its value against the dollar since the start of the year. The Turkish lira has hit a record low of 12.49 against the US dollar after President Recep Tayyip Erdogan defended recent sharp rate cuts. Erdogan has applied pressure on the central bank to pivot to an aggressive easing cycle …

Turkey again cuts interest rates, currency hits new low
3 years, 1 month ago

Turkey again cuts interest rates, currency hits new low

Associated Press  

ANKARA, Turkey — Turkey’s Central Bank cut interest rates again Thursday, a day after President Recep Tayyip Erdogan spoke out against high borrowing rates and raising increasing concerns about the impact of soaring consumer prices on families and businesses. The rate cuts have increased concerns over the bank’s independence from Erdogan, who, contrary to traditional economic theory, argues that steep …

Turkey’s central bank cuts rates again, lira sinks to record low
3 years, 1 month ago

Turkey’s central bank cuts rates again, lira sinks to record low

Al Jazeera  

Turkey’s central bank slashed interest rates for the third month running, and once again the lira paid the price, sinking to a new record low. The Turkish lira fell to a record low after the central bank cut borrowing costs for a third straight month, a move that risks further undermining price and currency stability. Yet under pressure from President …

Turkish lira continues to slide after interest rate cut
3 years, 2 months ago

Turkish lira continues to slide after interest rate cut

Associated Press  

ANKARA, Turkey — The Turkish lira continued to slide and reached a record low against the U.S. dollar Friday, a day after the Central Bank sharply cut interest rates. The Central Bank’s monetary committee cut the rate Thursday from 18% to 16%, despite rising inflation, surprising analysts and compounding a long run of losses. Economists generally view higher interest rates …

Turkish lira at new lows after Erdogan fires bank officials
3 years, 2 months ago

Turkish lira at new lows after Erdogan fires bank officials

Associated Press  

ANKARA, Turkey — The Turkish lira hit record lows against the dollar Thursday after President Recep Tayyip Erdogan fired senior central bank officials, heightening concerns over the Turkish leader’s interference in the bank’s activities. Erdogan dismissed deputy central bank governors Semih Tumen and Ugur Namik Kucuk as well as Abdullah Yavas, a member of the bank’s monetary policy committee, according …

Turkish central bank bows to Erdogan’s pressure to cut rates
3 years, 3 months ago

Turkish central bank bows to Erdogan’s pressure to cut rates

Associated Press  

ISTANBUL — Turkey’s Central Bank unexpectedly cut the main interest rate by one percentage point on Thursday, bowing to President Recep Tayyip Erdogan’s demand for lower borrowing rates to boost growth. The bank’s monetary committee cut the policy rate from 19% to 18% despite an annual inflation rate of 19.25%. Economists generally view higher interest rates as a curb on …

Turkey: Central bank resists Erdogan’s calls for rate cut
3 years, 4 months ago

Turkey: Central bank resists Erdogan’s calls for rate cut

Al Jazeera  

The Turkish lira rallied after the country’s central bank resisted President Recep Erdogan’s calls for an interest rate cut and kept its benchmark rate unchanged. The Turkish lira rallied to lead gains among emerging-market peers after Turkey’s central bank held its benchmark interest rate, defying President Recep Tayyip Erdogan’s calls for a cut. Positive Yield “With analysts expecting inflation to …

Erdogan urges investors to trust Turkey's economy, potential
3 years, 9 months ago

Erdogan urges investors to trust Turkey's economy, potential

The Independent  

Sign up for the daily Inside Washington email for exclusive US coverage and analysis sent to your inbox Get our free Inside Washington email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ /verifyErrors }} Turkish …

Erdogan urges investors to trust Turkey’s economy, potential
3 years, 9 months ago

Erdogan urges investors to trust Turkey’s economy, potential

Associated Press  

ANKARA, Turkey — Turkish President Recep Tayyip Erdogan urged foreign investors Wednesdays to have confidence in Turkey’s economy days after he fired his third central bank governor in less than two years, causing market upheaval. Erdogan last week dismissed central bank head Naci Agbal, who had raised investor confidence and shored up the Turkish currency following a series of interest …

His political future at stake, Erdogan seeks to remake Turkey
3 years, 9 months ago

His political future at stake, Erdogan seeks to remake Turkey

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. In London, Paul McNamara, investment director at asset managers …

Turkey in Tough Battle to Defend Lira Despite Dollar Weakness
4 years, 4 months ago

Turkey in Tough Battle to Defend Lira Despite Dollar Weakness

Live Mint  

Not even the dollar’s swoon is helping the Turkish lira, which is being weighed down by a widening current-account deficit and an outflow of foreign capital. Turkish state-run banks, which on Monday sold about $1 billion to support the lira, were again seen defending the currency on Tuesday, according to two people with knowledge of the matter. “The lira is …

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