One of Turkey's largest supermarket chains has closed the 2019 fiscal year at a loss of 492,112 Turkish Lira (over $75,000), an independent audit revealed to the Public Disclosure Platform (KAP). A company balance sheet revealed half of the company's total liabilities to be in foreign currencies, indicating the 2019 losses for Migros could have been triggered by the fluctuations in foreign currency exchange rates.
A hearing scheduled for March 3 in the case against Turkey's state-owned Halkbank has been adjourned. In a letter to Judge Berman, the bank's lawyer Andrew Hruska asked for more time to obtain a written authorization from Halkbank indicating that he has been given permission by the bank's general manager to enter a plea on its behalf.
Turkey's most recent increase of its special consumption tax on gas and diesel fuel will bring an estimated five billion Turkish Liras of annual income. With a 0,18 TL/litre increase on the tax, it is now 2,52 TL/litre for gas and 2,05 TL/litre for diesel fuel.
Finance Minister Albayrak has deleted his tweets praising Turkish economy following backlash from social media users. Albayrak's tweets came just hours after authorities announced that 33 Turkish soldiers were killed in Syria's Idlib, in one of the deadliest attacks on Turkish troops in the Republic's history.
The European Union will be imposing sanctions on two top executives from Turkish Petroleum (TPAO) for the country's drilling activities in the east Mediterranean that it deemed illegal, the Official Journal of the EU said on Feb. 27. Vice President Mehmet Ferruh Akalın and Deputy Director of the Exploration Department Ali Coşkun Namoğlu will see their EU assets frozen and be forbidden to travel in EU countries.
The Turkish Central Bank has announced its foreign currency reserves declined by $2.45 billion to $73.19 billion in the week ending on Feb. 21. 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.
International credit rating giant Moody's warned Turkey that negative real interest rates could hurt the Turkish Central Bank's credibility and lower investors' trust. The practice of having interest rates on loans that are lower than the inflation rate, negative real interest rates make Turkey more hazardous rather than risk-averse for investors, Moody's added.
The 303 Turkish Lira raise in minimum wage from January has become irrelevant in February, Turkey's Confederation of Turkish Trade Unions (Türk-İş) said. The first two months of 2020 have seen a price surge of 4.28% and the hunger threshold is set at 2,257 TL.
After more than three months of resistance, Turkey’s state-owned Halkbank has agreed to appear in the New York court to face criminal charges that it helped Iran evade U.S. sanctions. The bank is expected to enter its plea on March 3.
The gold and dollar exchange rates in Turkey surged to record highs Feb. 24, dropping again on Feb. 25 after markets opened and traders started to sell. Dollar prices rose as high as 6.16 TL during the day, marking a new high for the last 9 months. The price of 1 ounce of gold reached $1,688, and the price of one gram of gold reached a record price of 334 TL.
Governments across the world are starting to use more fiscal firepower to boost economies as the coronavirus outbreak is taking a toll on the global economy. Also, central banks across the world have announced that they are “closely monitoring” the risk from the coronavirus outbreak, as investors increasingly expect the Fed to lower interest rates by 25 basis points next month.
German automaker Volkswagen has once again delayed plans to establish a factor producing its vehicles in Turkey.The factory was previously delayed last October amid Turkey's Operation Peace Spring into northeastern Syria, where Turkish armed forces alongside Ankara-backed Syrian rebel squads drove out the Kurdish People's Protection Forces (YPG) from territory it controlled in the region.
The outbreak of the coronavirus has hindered the import of Chinese sunflower seeds to the central Anatolian province of Kayseri. While stocks are used up and no imports are expected soon, vendors predict sunflower seed prices to increase up to double the current 20 Turkish Liras per kilo.
Borsa Istanbul will remove two zeros from its indices on April 27, it said on Feb. 19. The stock exchange will test this move in several phases. "Planned go live date is April 27, 2020 and the index values will continue to be shown in two decimal places. Contract sizes will be decreased to 10 from 100. Price ticks for futures will be increased to 0.25 from 0.025," it noted.
Turkey's opposition parties CHP and HDP have castigated a banking bill the government has sought to push through. Both parties claimed the law will serve to fund the president's "Kanal Istanbul" project.