The number of workers on unpaid leave has neared 2 million, according to statistics shared by Turkish Employment Agency (İŞKUR). A total of 1,703,147 workers were put on unpaid leave between April and June, while the number increased to 1,901,212 between April and July.
Turkish public banks have started charging clients for foreign currency withdrawals in accordance with the Central Bank's August 4 decree that aims to push down the amount of foreign cash circulating in Turkey. The 0.2 to 0.5 percent commissions for withdrawals are part of Ankara's efforts to lower the Turkish Lira's exchange rate against the dollar and the euro, which peaked to record highs earlier this month.
Finance Minister Albayrak downplays lira’s sharp fall via asking ‘Are you getting your salaries in dollars?’
Treasury and Finance Minister Berat Albayrak has downplayed Turkish Lira's sharp fall via asking "Are you getting your salaries in dollars?" "First, let me ask you this; Are you getting your salaries in dollars? Do you owe money in dollars? Do you have any business in dollars?" Albayrak responded to a question on whether the people should be concerned on Aug. 12, prompting surprise on social media.
Number of unemployed people in Turkey higher than populations of 109 countries, says main opposition CHP
Turkey's main opposition CHP has disputed the official unemployment statistics, saying that the country's actual unemployment rate stands at 30.6 percent which corresponds to over 10.5 million people. CHP spokesperson Faik Öztrak has said that this number of unemployed people is higher than the populations of 109 countries.
The World Bank issued its latest edition of the Turkey Economic Monitor (TEM) on Aug. 12, in which it pointed to the sharp drop in Turkey's Central Bank reserves. "Though short-term external debt obligations seem manageable, a growing current account deficit and the sharp decline in reserves have heightened external vulnerabilities," it said.
Two Turkish oil companies were merged under a subsidiary named "beautiful energy," where they make up 6.5 percent of the energy market. TOTAL and M Oil will maintain their branding following the merge.
The International Monetary Fund (IMF) didn't ask to borrow money from Turkey, former Central Bank head Durmuş Yılmaz said to refute President Recep Tayyip Erdoğan's claim. "This is a lie. The issue is technical. In short, the IMF didn't ask to borrow money from us. A commitment was made to a contingency fund and it wasn't realized. The proof: There is no such record on the Central Bank balance," Yılmaz tweeted on Aug. 11.
Goldman Sachs revised its periodic forecasts for the Turkish lira, anticipating that it will continue to fall and will reach 8.25 to the dollar by next year. The lira has been the world's second-worst performing currency thus far this month, dropping four percent for a total of an 18 percent decline in 2020.
Turkey’s state-run Halkbank, facing trial in the U.S. over charges of breaking sanctions on Iran, said on Aug. 10 that it was immune from prosecution and that U.S. laws did not cover its alleged misconduct. In a Manhattan court filing, Halkbank said its status as an "instrumentality" of Turkey shielded it from prosecution under principles of sovereign immunity.
President Erdoğan has once again given sales of white goods as an example to the economy’s current “climb," saying that it was thanks to the AKP that people now enjoy an "increased level of welfare." Erdoğan's comments came after Turkish Lira hit all-time lows against the euro and dollar as the coronavirus pandemic triggered massive capital outflows from the country.
Some 40 percent of youth aged between 25-29 are financially dependent on their parents, said a deputy of main opposition CHP. "Some 40 percent of our 6.1 million young people in the age group of 25-29, i.e. 2.5 million, are neither in unemployment nor in education. Due to the ruling government's policies, our youth in this age group are unfortunately living in a way that is depending on their parents,” Veli Ağbaba said.
Turkish Statistical Institute (TÜİK) data revealed that seasonally adjusted unemployment in May rose by 0.2 percent from May 2019. Some 4,166,000 people reported unemployment in May.
Turkey's banking authority lowered the mandated loan-to-assets ratio for deposit banks to 95 percent, formerly 100 percent. The relaxing of the stimulation policy follows record devaluation of the Turkish Lira against the dollar.
HDP deputy Garo Paylan has submitted a parliamentary question, asking Treasury and Finance Minister Berat Albayrak if he is thinking of resigning "after ruining the economy in two years." "During you term, citizens have become impoverished, unemployment has increased and the cost of living became unbearable. During your term, the reserves of the Central Bank and state banks have been drained,” Paylan wrote in his parliamentary question.
Economist and former Treasury advisor Mahfi Eğilmez has said that the Turkish economy is no longer predictable. "In an unpredictable economy, due to the fact the risks increase, this means that expenses will also increase,” Eğilmez wrote in a column on Aug. 5.