TREASURY PAYS RECORD RATES IN BACK-TO-BACK BOND AUCTIONS
Turkey has become the world's most expensive borrower in local currency, agreeing to pay interest rates exceeding 41% during back-to-back domestic bond auctions this week.
Analysis
In-Depth Analysis
Smart, independent reporting on Turkey's politics, economy and foreign affairs.
BIG MAC INDEX SUGGESTS LIRA IS SEVERELY OVERVALUED
Former Treasury Undersecretary and prominent economist Mahfi Eğilmez calculated that the fair value of the US dollar should be 65 liras based on the Big Mac Index, far above the market exchange rate of 47.50 liras and warned that the holding the exchange rate below its fair value inflates the country's GDP and per capita income figures on paper without making Turks any richer.
GOVERNMENT CUTS DIESEL TAXES TO LOWER FUEL PRICES AND COMBAT INFLATION
The Turkish government has temporarily eliminated the special consumption tax on diesel fuel for the remainder of August in an effort to curb inflation. Pump prices fell by more than 13 percent a day after the government’s decision on Aug. 12.
CENTRAL BANK RAISES YEAR-END INFLATION FORECAST TO 28 PERCENT
The central bank has raised its year-end inflation forecast for 2026 to 28 percent from 26 percent.
FIDAN MEETS TRIPOLI AND BENGHAZI LEADERS ALIKE
Foreign Minister Hakan Fidan traveled to Libya on Aug. 11 and 12, visiting both Tripoli and Benghazi, in what appears to be the first time a Turkish foreign minister has made a simultaneous visit to meet competing sides in the Libyan conflict.
YRP AND SAADET PARTY TALKS GAIN MOMENTUM
Two parties that once stood as rivals, both claiming the legacy of Necmettin Erbakan — the founding leader of political Islam in Turkey under the name of National View— are continuing merger talks.
MINERS DETAINED OUTSIDE ENERGY MINISTRY AS THEY CONTINUE PROTESTS OVER UNPAID WAGES
Police forcibly intervened on Aug. 13 against striking miners outside the Energy Ministry in Ankara, detaining union leaders and multiple workers on the fourth day of their protest over unpaid wages.
AKP AND DEM PARTY EXCHANGE BARBS OVER NETANYAHU
A reference to Israel Prime Minister Benjamin Netanyahu’s remarks was enough to increase the tension between the AKP and DEM soon after the two’s cooperation on the framework law.
OPERATION TARGETS SÜLEYMANCI GROUP
A financial crimes operation targeting the Süleymancı religious sect, led by Alihan Kuriş, whose given name is Ali Erhan Kuriş, 46, was carried out across 17 provinces. Detention orders were issued for 49 people, including Kuriş.
467 VOTES: A DRESS REHEARSAL FOR A NEW CONSTITUTION?
Debate is underway over how the political balance will shift after the “Framework Law,” which establishes the legal basis for the PKK’s disarmament process, passed the 600-seat parliament with a record 467 votes. The overwhelming support for the law is expected to whet the government’s long-standing appetite for a “new constitution.” But is that possible before the general election, now 20 months away if held on schedule?
İYİ PARTY’S NEW COURSE UNDER MÜSAVAT DERVİŞOĞLU
The İYİ Party was the only party to vote as a bloc against the framework law on the Kurdish peace process. Its instincts on the nationalist right are already well known. But before turning to the party, it is worth dwelling for a moment on its chair. Let us begin with his name: Müsavat.
TRILATERAL DEFENSE PACT HARBORS UNCERTAINTIES
Makkah Joint Defence Agreement including collective defense provision raised eyebrows as the full text of the agreement was not disclosed.