CENTRAL BANK CUTS CREDIT CARD INTEREST RATES
The Central Bank reduced the calculation margins for credit card cash advances and overdraft account interest rates by 25 basis points.
Analysis
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CENTRAL BANK CUTS INTEREST RATES
The Central Bank reduced its policy interest rate, the one-week repo auction rate, from 43% to 40.5%, the second straight cut.
CYPRUS: LEGENDARY DIVIDED ISLAND, COVETED BY MANY
Cyprus, the mythical land of Aphrodite, has long been in the headlines for one defining issue: its division. Since the 1960s, when Greek Cypriots pursued Enosis—union with Greece—the island has been riven by conflict. The Turkish military intervention of July 1974 cemented this division, leaving Northern Cyprus under Turkish protection and Southern Cyprus under Greek Cypriot control. For decades, this seemed to be the central challenge of the island: reunification, or lack thereof. But today, Cyprus is far more than just a frozen conflict—it is becoming one of the most militarized and geopolitically contested territories in the Eastern Mediterranean.
SYRIAN CONUNDRUM AND KURDISH PROCESS
Events in Syria have taken an unprecedented turn. Until the last few weeks, Turkey and the U.S., as well as a coalition of Western and Arab states, were advocating a centralised and unitary state under Ahmed Al Sharaa’s leadership. Now this basic tenet of international support seems to be in question after U.S. special representative for Syria Thomas Barrack backtracked from the idea.
CENTRAL BANK UPS INFLATION TARGETS FOR 2026, 2027
Central Bank Governor Fatih Karahan said inflation is expected to stand between 25% and 29% at the end of 2025, and between 13% and 19% in 2026.
TURKEY GRAPPLES WITH CAPTURED E-STATE PASSWORDS
With checks and balances eroded and power increasingly centralized, Turkey is facing what may be one of the biggest digital scandals in its history. The online signatures of high-level bureaucrats have been compromised, allowing a criminal network to appoint public servants via the e-State (e-Devlet) system, issue fake diplomas and licenses, forge English proficiency test results and sell properties— raising serious concerns about fraudulent graduates.
CENTRAL BANK CUTS RATES BY 3 POINTS DESPITE ONGOING INFLATION RISKS
The Central Bank lowered its one-week repo rate from 46% to 43% on July 24, despite warning signs that inflation pressures persist. This was the first cut following the April rate hike. The Monetary Policy Committee also reduced the overnight lending rate from 49% to 46% and the overnight borrowing rate from 44.5% to 41.5%. While June’s core inflation trend remained unchanged, preliminary indicators pointed to a temporary rise in July inflation due to month-specific factors.
TURKEY RESHAPES OIL TIES WITH IRAQ
After a decision to terminate the 1973 crude oil pipeline agreement with Iraq as of July 27, 2026, Turkey started negotiations with the Iraqi central government for a more comprehensive agreement on the transportation of Iraqi oil. The move is not a withdrawal from the partnership but a strategic reset. Under the 1973 agreement and its supplementary protocols, either party must notify the other at least one year before expiry if it intends to terminate the deal. If no such notice is given, the contract automatically renews for five years. Turkey has now officially informed Iraq of its intent to withdraw, preventing automatic renewal and opening space for renegotiation.
US ENVOY SHIFTS TONE ON YPG BUT ISRAEL NOT IN TUNE
A Turkish ambassador serving in a Central Asian country before 2016 was criticized for not showing enough interest in the Gülenists schools. The envoy received several phone calls from AKP officials complaining he was not, for instance, visiting the schools frequently enough.
SECULAR NORTH VS. RELIGIOUS ERDOĞAN: A POLITICAL WAR ON A DIVIDED ISLAND
“Those trying to undermine ties between Türkiye and the Turkic world through manipulation will not succeed,” Turkish Foreign Minister Hakan Fidan said finally, weeks, even months, after four Central Asian Republics accredited ambassadors to Greek Cyprus. While Ankara continues to argue for two separate states to solve the Cyprus issue, it remains unmoved by recent diplomatic setbacks.
CENTRAL ASIAN REPUBLICS A LA MODE?
The Central Asian Republics of Kazakhstan, Uzbekistan, Turkmenistan, Kyrgyzstan and Tajikistan have been on the radar of those who follow international relations due to two recent developments. Traditionally, the Central Asian Republics, rich in natural resources in a geo-strategic location, have been in the Russian sphere of influence and Russia still tries to exert dominance over them. However, nearly all have started to diversify their relations with third countries and regional groupings such as China, the U.S., the EU and Turkey.