Analysis
Smart, independent reporting on Turkey's politics, economy and foreign affairs.
Authorities launched a tax audit targeting Cengiz Holding, a prominent pro-government conglomerate, but the decision to move the case from Istanbul to Ankara has raised questions. The group is also facing fierce environmental backlash over its partnership in the COP31 climate summit.
Sweeping reforms to capital markets institutions will hinge on a State Audit Council (DDK) report on the multi-billion-dollar investment fund scandal, with President Recep Tayyip Erdoğan awaiting its findings before taking action.
The Central Bank cut its benchmark policy rate by 100 basis points to 36% on Oct. 22, its first monetary easing since January, in line with market expectations.
More than a month after the fund collapse occurred, the shockwaves continue to rock the stock market. The crisis wiped out trillions of liras in corporate market capitalization and drove key valuation metrics to multi-year lows in Borsa Istanbul.
Turkey’s automotive sector is fighting a rearguard battle in Brussels after France and Germany agreed on Oct. 16 to a “Made in Europe” definition that includes the UK and Norway but leaves Turkey out.
Foreign direct investment (FDI) inflows fell 35% year-over-year in the first eight months of 2026 to $6.8 billion from $10.5 billion recorded during the same period in 2025, according to data released by the International Investors Association (YASED).
The central bank’s reliance on foreign exchange swaps has dropped sharply, marking a structural improvement in the quality of the bank’s international reserves.
Statements attributed to Central Bank Governor Fatih Karahan during IMF and World Bank meetings in Bangkok sparked debate over foreign exchange policy, prompting a direct denial from a top market economist who attended the session.
For nearly half a million retail investors caught in Turkey’s worst financial storm in years, compensation has finally begun to flow. But the first cash distributions came as the fallout spread beyond Turkey’s borders: global index provider MSCI froze index changes for Turkish equities on Oct. 15 and warned of a possible downgrade, while prosecutors broadened their probes and lawmakers scrambled to pass emergency legislation.
In one of the country’s largest financial scandals, payments to victimized fund investors began and priority will be given to small investors, according to statements from officials.
For the first time in nearly five years, Turkey’s annual inflation rate slipped below 30%, giving the central bank room to consider easing monetary policy at its meeting on Oct. 22.
Electronics and home appliances exporter Vestel Elektronik faces growing financial pressure as Moody’s cut its long-term rating and warned of a very high risk of default.