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.
ERDOĞAN EXPECTED TO ANNOUNCE NEW AKP MEMBERS
President Recep Tayyip Erdoğan is expected to welcome new members into the AKP at the party's 25th anniversary event in Ankara on Aug. 14, with two sitting deputies from the İYİ Party set to join.
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.
A NEW SUNNI AXIS?
On Friday — a day of particular symbolic weight for the Islamic world — President Recep Tayyip Erdoğan, Crown Prince Mohammed bin Salman and Prime Minister Shehbaz Sharif put their signatures to a trilateral defense agreement in Mecca, Islam’s holiest city.
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?
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.
TURKEY TO SELL US-MADE MISSILES TO UKRAINE
Ankara has requested permission from Washington for the re-export of US-manufactured ammunition in its inventory to Ukraine.
La Isla Bonita
Sixty thousand cross to Ceuta, most turn right back around, EU ministers blast Spain, then quietly walk it down.
VİBRATÖR /VIBRATOR
The word of the week is vibratör (vibrator), because Turkey has reached that stage of public life where even a small vibrating object of adult pleasure may require a prosecutor’s attention. Here, a vibrator is not merely a device; it is a small object with the bad manners to expose the size of the state.
INFLATION HITS TURKEY'S TOURISM ENGINE
Turkey's tourism industry, long considered an economic powerhouse, is struggling to achieve expected revenue growth this year as inflation drives up costs and diverts customers elsewhere.