The swap deal limit between the central banks of Turkey and Qatar has been amended to $15 billion equivalent of Turkish lira and Qatari riyal. According to a statement from the Turkish Central Bank on May 20, the move aims to facilitate bilateral trade in respective local currencies and to support financial stability of the two countries.
Turkey's swap negotiations with many countries are continuing and reports of deals reached with Japan and the United Kingdom are not true, state-run Anadolu Agency cited Treasury and Finance Ministry officials as saying on May 19. Turkey has been in talks to establish swap lines with members of G20, with more than one swap line possible, the country's Treasury and Finance Minister Berat Albayrak said early May.
Turkey's private sector held $177.6 billion in foreign debt as of March this year, according to the most recent figures from Turkey's Central Bank. 61.8% of this debt was denominated in dollars and 33.5% in euros, while only 3% was held in Turkish lira.
Nearly one million households around Turkey had their electricity services cut off when they failed to pay their bills by the end of February, the Energy Ministry said. In addition, nearly 200,000 people were taken to court for their debts, meaning that nearly 2 percent of all of the country's households are unable to pay for electricity services.
The ruling Justice and Development Party (AKP) government has appealed to foreign allies in an urgent search for funding, three senior Turkish officials told Reuters. Treasury and Central Bank officials have held bilateral talks in recent days with counterparts from Japan and the United Kingdom on setting up currency swap lines, and with Qatar and China on expanding existing facilities
A total of 70 publicly-traded companies out of 410 have gained over 100 percent value in two months. Tourism companies, which are expected to go through a difficult year amid the coronavirus (COVID-19) pandemic, and investment trusts are among the companies that saw over 100 percent price increase, as well as companies that halted their production in their areas of activity.
Automotive production in Turkey declined by 91 pct in April, according to figures from the Automative Industry Association (OSD) released on Monday. Export figures dropped 33 pct during the first four months of this year in comparison to the same period in 2019.
Turkey has announced additional import tariffs of 30 percent imposed on dozens of goods including household appliances, jewelry, musical instruments and sanitary products.
Turkey’s government is considering a capital injection worth 20 billion lira ($2.81 billion) for three state-owned banks -- Ziraat Bank, Halkbank and Vakıfbank -- so that they can provide loans to businesses hit by the coronavirus epidemic, two anonymous banking sources told Reuters.
Coronavirus crisis is ‘like no other’ as it hit all sectors, countries, says chief of Turkey’s top business group
TÜSİAD president Simone Kaslowski said that coronavirus epidemic has created an economic crisis “like no other” as this is also a health crisis and therefore there is no sector or country not impacted by the outbreak. “This does not resemble former crises; this is a health crisis, and there is no safe harbor left in the world. This is a global crisis and we need to tackle it as a global matter,” Kaslowsk said on May 7.
Turkey’s BDDK bank regulator has dropped a trading ban imposed last week on UBS, Citigroup and BNP Paribas because they have fulfilled foreign exchange obligations promptly, according to a BDDK letter sent to banks on May 11. The short-lived ban was one of a few protective measures adopted by the government on May 7 when the Turkish lira tumbled intraday to 7.269 versus the dollar, its weakest ever.
Three opposition parties, the main opposition Republican People's Party (CHP), Peoples' Democratic Party (HDP) and the right-wing Good (İYİ) Party, have called on the government to revise the 2020 central budget following the shortcomings that occurred during the coronavirus (COVID-19) pandemic. The deputies from the opposition parties said that the basic needs of the people were not met during the pandemic.
Former advisor for Turkish Treasury: Excluding swap lines, central bank reserves $13.4 billion in the red
Excluding swap lines, Turkey's Central Bank's net reserves stood at $13.4 billion in the negative as of the end of April, according to economist and former Treasury Advisor Mahfi Eğilmez. The primary reason behind the foreign currency reserves falling by $28.5 is the sale of the Central Bank reserves, he argued. Eğilmez also said that there has been a decrease of $1.5 billion in foreign currency bank accounts in the past week.
Turkey’s energy watchdog launches probe into Istanbul gas grid over issuing bills against regulations
The Energy Market Regulatory Authority (EPDK) has launched a probe into the Istanbul Natural Gas Authority (İGDAŞ) for preparing bills in time intervals that go against the regulations. "We have never come across such complaints in the natural gas sector. We hope that it will not reoccur," EPDK chair Mustafa Yılmaz said.
The Turkish Lira has further weakened against the dollar, hitting its weakest level since a currency crisis in August 2018. The lira weakened to 7 against the dollar on May 4, after a long stand-off around that level.