Analysis
Smart, independent reporting on Turkey's politics, economy and foreign affairs.
The central bank kept its benchmark policy rate unchanged at 37% during its Monetary Policy Committee meeting on July 23, matching market expectations. However, business leaders are increasingly complaining about high borrowing costs, tight credit restrictions, and falling industrial output.
The number of electric vehicle charging sockets across Turkey exceeded 45,000 in June, according to data released by the Energy Market Regulatory Authority (EPDK).
Most market participants expect the central bank to keep the policy rate unchanged at 37% when it meets on July 23, but pressure is building for a cut and some experts are calling for a wholesale shift in monetary policy.
Foreign investors' confidence in Turkish equities is under mounting pressure as two of the world's leading index providers signaled Istanbul's stock market could face a downgrade. Morgan Stanley Capital International (MSCI) issued another warning regarding investment accessibility and shareholder transparency, announcing it may re-evaluate free-float structures on a company-by-company basis and reclassify certain shareholders as 'non-free float' to address distorted calculations driven by coordinated fund actions.
Turkey's Capital Markets Board (SPK) is tightening its grip on investment funds and the stock market under new chair Mahmut Sütcü in response to domestic and international calls for a clampdown on manipulation.
A judicial crackdown on Turkey's largest poultry producers has ignited debate over government intervention in the free market, temporary corporate takeovers, and soaring food inflation.
Selling pressure intensified on Istanbul’s stock exchange today following a court ruling of "absolute nullity" regarding the main opposition CHP congress. The benchmark BIST 100 index plunged over 6%, triggering a market-wide circuit breaker. The banking index took an even heavier hit, dropping more than 8% to close at 13,163 points.
The government’s efforts to cool down the Turkish economy are falling short as rising energy prices and deteriorating market confidence push inflation targets out of reach.
The European Union has requested full access to Turkey’s public procurement market as a condition for including Turkish goods under the 'Made in Europe' initiative.
Baykar will begin manufacturing unmanned aerial vehicles in Italy for the European market, a move that will allow its systems to carry a “Made in EU” label and gain customs advantages across the bloc, while the company also plans a logistics base and service network in the United States.
When a European expert based in Bulgaria received an invitation to a conference in Tbilisi, he decided to take the maritime route, boarding the ferry from Burgaz to Batumi. At one stage of the 64-hour crossing, while sailing in the open sea, the ferry shut its transponder and turned off its lights. A Russian fuel tanker approached and docked with the ferry to provide fuel to the ship, which is mainly used by trucks. The expert later found out that Russia sold the fuel 30 to 40 percent less than the market price. The captain of the ferry confessed he had all the official documents proving that the fuel was purchased from Romania.
The postponement of the decision in the lawsuit to cancel the CHP's 38th regular congress brought short-term relief to the markets. The BIST 100 index gained 5% following the decision. The banking index also gained over 6%. The risk premium reached 261 basis points, the lowest in about six months.