Turkey's depletion of foreign exchange reserves and the fact that a majority of its forex reserves are swap lines has created mass distrust in the economy, Turkish Industry and Business Association (TÜSİAD) Chairman Simone Kaslowski said. Turkey needs to “ensure full market confidence” to attract long-term financing flows, Kaslowski said during a videoconference on Sept. 24.
Construction on Turkey's first nuclear power plant is ongoing amid reports of unpaid wages, the general manager said on Sept. 23. While management said it was contract companies that were lagging behind on payments, they launched an investigation into the wages nonetheless.
Turkey's Central Bank unexpectedly hiked interest rates on Sept. 24, triggering an improvement in the lira's value against the dollar. The Turkish Lira has sunk to record lows over the past month as Ankara's currency interventions proved futile.
CHP Group Deputy Chair Özgür Özel has asked the government to reveal who received millions of dollars of bribe from shady Iranian-Turkish businessman Reza Zarrab. "It's said that $80 million of this money was given to a single politician. Will the Financial Crime Investigation Board, Turkish Treasury, Court of Accounts and other auditors be mobilized?" Özel asked.
The Turkish Lira observed a new low against the dollar on Sept. 23, trading for 7.684 liras against the greenback by 10 a.m. The lira observed a record low yesterday as well, dipping to 7.682 liras. Meanwhile, Turkish economist Uğur Gürses noted that the decline in exchange rates was triggered by a distrust for the economy.
Turkey's premier petrochemical company Petkim has been involved in illegal oil business with Syria, according to the Financial Crimes Enforcement Network (FinCEN) Files, which said that Petkim and its associate Petrokim completed over $90 million in "suspicious transactions" between March 2010 and January 2016.
Turkey's Aktif Bank is suspected of having carried out money laundering on a grand scale for a customer network that includes the scandal-ridden German financial service provider Wirecard and shady figures from the porn industry, according to the FinCEN Files. Aktif Bank is part of Çalık Holding and a number of "suspicious transactions" included in the FinCEN Files were made while Minister Albayrak was the CEO of the holding.
Shady Turkish-Iranian businessman Reza Zarrab's money laundering scheme was revealed in leaked U.S. files, which were obtained by BuzzFeed News and which are being investigated by 400 journalists from 88 countries. According to the files, the United Arab Emirates' central bank, UK-based Standard Chartered and Deutsche Bank took part in Zarrab's billion-dollar scheme.
The Turkish Lira continued plummet to record lows against G10 currencies on Sept. 21, trading for 7.59 liras on the dollar at opening. Meanwhile, the currency trades for 8.98 liras per euro and 9.81 liras per pound sterlin.
Turkey's state-owned Halkbank has urged a judge to dismiss a U.S. indictment accusing the bank of helping Iran evade American sanctions. At a hearing in Manhattan federal court on Sept. 18, a lawyer for Halkbank said its status as a Turkish “instrumentality” shielded it from prosecution because of sovereign immunity.
Once a self-sufficient state in farming, Turkey imported $3.5 billion of agricultural goods in the first seven months of the year, a number that will likely double by December, main opposition CHP deeputy Okan Gaytancıoğlu said. He claimed that traders close to the ruling AKP benefit from imports while domestic producers keep losing money.
Turkey’s currency has tumbled further, hitting another record low. The Turkish lira dropped to 7.50 against the dollar on Sept. 16 after credit rating agency Moody's downgraded the ratings of 13 Turkish banks.
Moody's Investors Service on Sept. 15 downgraded 13 Turkish banks, days after Turkey had its debt rating cut deeper into junk by the company. The outlooks on the long-term deposit and debt ratings of all the Turkish banks rated by Moody's remain negative, in line with the negative outlook on the sovereign rating.
Turkey's record low credit rating on Sept. 11 will not improve unless the government reforms economic policies drastically, Turkish economist Mahfi Eğilmez said. Finance giant Moody's included "Turkish officials' inadequate response to financial problems" as part of the items on a negative outlook for investment.
U.S. tech giant Amazon offered up its speed-delivery subscription to Turkish consumers on Sept. 15. The monthly subscription fee was set for 7.99 Turkish Liras, about one dollar with the current exchange rates.