Since the start of the week, the value of the Turkish Lira has depreciated amid statements from top political figures in Ankara suggesting that a military operation in Syria’s Afrin region is imminent. On Jan. 16 alone, the USD/TRY rate rose from 3.73 to 3.83.
Although it had later been revealed to be fake, the news story that stood out the most last week was on how the United States had supposedly found Chinese bonds more appealing than other financial assets.
One of the distinguishing features of Murat Çetinkaya, appointed governor of Turkey’s Central Bank in April 2016, was that he had little intention to intervene in foreign exchange markets by selling foreign currency.
Many regulations have been made over the 696-numbered statutory decree issued on Dec. 24. These regulations have again nothing to do with issues that have led to the declaration of the state of emergency in Turkey. And a couple of these regulations are related to the economy.
The Turkish Central Bank has been signaling that “its pistol is on the wall” by creating an atmosphere that it would make “sufficient interest rate increase” for investors for quite some time now, similar to the famous monologue of Anton Chekhov.
From Dec. 4 until the early hours of Dec. 5, the U.S. dollar suddenly lost 10 kuruş against the Turkish Lira.
The Aegean province of İzmir has been shining strikingly in the last couple of years, sprinting like a fast marathon runner.
The state budget displayed a 31.6 billion Turkish Lira deficit in the first nine months of the year. The yearend fiscal deficit will be at 61 billion liras, looking at the assumption based on the revised mid-term economic program.
Those administering public policy in economy shed light on the way forward with long-range headlights so that households and companies could look at the long-term. This is the function of the medium-term economic program released each year.
