Turkey has revoked a requirement that Central Bank deputy governors have 10 years prior experience and dropped a rule that banks set aside 20 percent of annual profit, the Official Gazette showed on July 12. The provision, which envisages 20 percent of the bank's annual profit to be reserved as a reserve fund, has been repealed, the same decree said.
The Turkish central bank’s gross foreign currency reserves decreased by $73 million over the period of June 26-July 3. State banks buying liras and selling dollars in an apparent attempt to prop up Turkey’s currency is seen by many investors as a reason for a gradual drain on the central bank’s foreign currency reserves in recent months.
Foreign investment in Istanbul's stock exchange fell below 50 percent for the first time since 2004, daily Sözcü reported. Almost four billion dollars have reportedly been sold out of the exchange in the first six months of 2020.
Finance Minister Berat Albayrak said that Turkey was an exception to the global financial crisis emerging in the aftermath of the COVID-19 pandemic. The minister said that Turkey has been outperforming other countries in "all measures of economic success."
Turkey's Central Bank has said that the removal of certain preventive measures imposed to combat the coronavirus (COVID-19) pandemic and the ensuing demand were the primary factors influencing inflation in June. According to the Central Bank's report, consumer prices went up 1.13 percent in June, rising 1.23 points and increasing 12.62 percent annually.
Turkey Tradesmen and Artisans Confederation (TESK) sent a letter to President Recep Tayyip Erdoğan containing eleven requests geared toward helping tradesmen and artisans who are struggling economically. TESK represents 2.5 million tradesman and artisans in Turkey.
Turkey's foreign trade deficit doubled between January and May as exports fell by 20 percent. The monthly trade deficit also doubled in May, surpassing $3 billion.
According to newly surfaced information, Turkey's central bank governor Murat Uysal on May 1 held a phone call with Federal Reserve chair Jerome Powell, Turkish media outlets have said. The phone call took place before Turkey secured a swap line with Qatar on May 20, providing some much-needed foreign funding to reinforce its depleted reserves and help steady the Turkish lira.
Turkey's June inflation rates exceeded experts' expectations at 1.13 percent, almost double the estimates. Meanwhile, annual inflation reached 12.62 percent.
Popular delivery service Getir is laying off motor couriers under the guise of safety measures, daily Birgün reported. Workers reportedly said that the layoffs were simultaneous with slower business compared to the boom they experienced during COVID-19 isolation.
Turkey's flagship carrier is planning to cut pilots' wages in half, lowering other paychecks and possibly restructure their payment scheme, a union representative told Bloomberg. Turkish Airlines paused commercial flights for about three months during the pandemic.
Positive developments in COVID-19 vaccine studies have stopped the steady increase in gold prices. Pharmaceutical giant Pfizer said on July 1 that their vaccines were effective in increasing recipients' antibodies.
The Turkish Competition Authority has launched a probe into German automotive giants Audi, Porsche, Volkswagen, Mercedes-Benz and BMW. The authority's announcement on July 1 came as Volkswagen AG canceled plans to build a car factory in Turkey after the coronavirus pandemic jolted auto markets.
Turkey's top banking authority received 33 percent more complaints in 2019, compared to the previous year. While majority of grievances were about personal loans, the second biggest topic of issues were debit and credit cards.
A lawyer for Turkey's state-owned Halkbank has said that the bank will ask the U.S. judge overseeing a criminal case accusing it of helping Iran evade American sanctions to recuse himself. Earlier in June, former US national security adviser John Bolton had said in his new memoir that Trump agreed to intervene in the Halkbank investigation at Erdoğan's request.