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.
Turkey's Competition Board has ultimately fined tech giant Google 98.3 million Turkish liras for violating the terms of fair competition due to unfair access to advertisement space. Last March, the board opened an investigation into claims that Google uses abusive tactics to quash its rivals.
Journalist Murat Yetkin, in his last piece, analyzed the state of Turkish economy and its effects over domestic political calculations of President Tayyip Erdoğan. Yetkin argued that under the ongoing economic circumstances, an early election for Erdoğan will be too risky and unnecessary.
Turkey's current account balance posted a deficit of $2.8 billion in December 2019, the Turkish Central Bank said on Feb. 14. Official data showed that the figure widened by $1.7 billion from same month the previous year.
The ruling AKP has reportedly resumed an effort to transfer the main opposition CHP's 28.1 percent stake in İşbank to the Treasury. AKP deputy chair Canikli presented a draft proposal regarding the issue to Erdoğan, who called for it to be revised and presented to him again "as soon as possible," daily Hürriyet reported on Feb. 13.
Turkey's Banking Regulation and Supervision Agency (BDDK) ruled that Turkish banks are allowed to swap only 10 percent of their legal capital. In August 2018, The BDDK had already lowered the limit of swaps, futures, forwards and options with a foreign currency and a Turkish Lira leg to 25 percent of the banks’ legal capital.
Russian oligarch Vladimir Potanin who grew up in Ankara was named the richest person in Russia by Forbes Magazine. Often dubbed "the Oligarch from Ankara" for the time he spent there while his father served as USSR Embassy's trade attaché, Potanin has an estimated worth of $25 billion.
The total amount of Turkish lira held in bank accounts in Turkey reached the 1.2 trillion TL mark, while accounts denominated for foreign currency held $224.7 billion, according to recent Central Bank figures pertaining to the week ending on January 31. The amount of consumer credit stood at 460.5 billion TL, while the amount of installment commercial loans totaled 379.5 billion TL. More than a third of the consumer credit, 188.8 billion TL, pertained to mortgage and housing loans.
The fugitive founder of a pyramid scheme called "Farm Bank" reportedly receives money transfers of about one million Turkish liras each month, Yeni Şafak daily reported. Rumored to be in Brazil, Aydın reportedly receives funds through four or five crypto-currency accounts, daily Yeni Şafak reported.
Turkish Lira deposits in banks have increased by 0.08 percent in the last week of January, reaching 1,259,898,662,000 liras, Turkey's Central Bank (TCMB) Weekly Money and Banking Statistics revealed. Meanwhile, foreign currency deposits have seen a increase of 0.18 percent, reaching $224,700,000,000.