Latest news with #TurkishCentralBank
Cedar News
20-07-2025
- Business
- Cedar News
Turkish Lira Hits Record Low Against U.S. Dollar Amid Political Turmoil
📉 Turkish Lira Hits Record Low Against U.S. Dollar Istanbul, July 20, 2025 — The Turkish lira hits record low as it plunged past 40 against the U.S. dollar on Saturday, marking a historic depreciation amid growing political turmoil and economic uncertainty in Turkey. The record low for the Turkish lira comes after a week of heightened political tension, including the recent detention of opposition leaders and ongoing government crackdowns. According to financial data, 1 USD is now worth more than 40.39 TRY, the weakest rate since official records began. 🔍 What's Driving the Turkish Lira's Collapse? 1. Political Instability The primary factor behind the fall is political unrest. A series of detentions targeting opposition mayors, including in major cities like Istanbul, has spooked investors and eroded confidence in Turkey's political and legal institutions. As tensions rise, the Turkish lira hits record low in response to growing fears of authoritarian consolidation. 2. Central Bank Pressure and Policy Concerns The Turkish Central Bank has faced criticism for inconsistent monetary policy and frequent political interference. Previous efforts to support the lira by selling foreign currency reserves have failed to reassure markets. With inflation already soaring, the central bank's options are increasingly limited as the Turkish lira hits record low again. 3. Investor Flight and Market Reaction Investors are pulling out of Turkish assets, citing increased risk. Credit default swaps have risen, bond yields have spiked, and the record low Turkish lira is causing inflation fears to surge, especially regarding imported goods and energy. 🗣️ Local & International Reaction Many Turkish citizens are voicing concern over the rising cost of living. 'Every time the Turkish lira hits a record low, we feel it at the grocery store, at the gas pump, and in our electricity bills,' said one Istanbul resident. Economists warn that unless decisive steps are taken to stabilize the currency and restore institutional independence, the lira's decline may accelerate further. 📊 Market Impact Exchange Rate: 1 USD = 40.39 TRY Investor Confidence: Near decade-low Foreign Reserves: Reportedly depleted amid previous interventions Inflation Outlook: Expected to rise sharply in Q3 2025 🔮 What Happens Next? The Turkish lira hitting a record low puts enormous pressure on the Central Bank ahead of its next policy meeting. Markets will be watching closely for potential interest rate hikes or other stabilization measures. Analysts suggest that without political de-escalation or credible economic reform, the lira may continue to slide, increasing the economic burden on Turkish households and businesses.
Bloomberg
11-07-2025
- Business
- Bloomberg
Turkey's Central Bank Signals Caution With Focus on Deposits
By and Beril Akman Save Turkish central bank Governor Fatih Karahan said policymakers are closely watching deposit preferences among local savers, signaling officials are likely to approach potential interest-rate cuts cautiously. Speaking to investors in closed-door meetings in London, monetary officials stressed deposit choices as an important indicator as they weigh upcoming rate decisions, people familiar with the discussions said, asking not to be named because they are private.
Business Recorder
24-05-2025
- Business
- Business Recorder
Turkish central bank raises two reserve requirement ratios
ISTANBUL: The Turkish Central Bank said on Saturday it was raising reserve requirement ratios for short-term lira-denominated funding obtained from abroad to strengthen macro financial stability and the monetary transmission mechanism. Turkish central bank gross reserves rose $6bn, reversing weeks of drops The reserve requirement ratio, which was 12% for maturities up to 1 year for lira-denominated funds from repo transactions abroad, was raised to 18% for maturities up to one month, and to14% for maturities up to three months.
Al Arabiya
24-04-2025
- Business
- Al Arabiya
Turkey, Kazakhstan cenbanks sign $735 million currency swap arrangement
The Turkish Central Bank said on Thursday it had signed a bilateral currency swap arrangement with the National Bank of the Republic of Kazakhstan to promote bilateral trade through a swap-financed trade settlement facility. It said the swap arrangement, signed by the banks' governors in Washington, allows for the exchange of local currencies between the two central banks of up to 28.0 billion lira ($735 million) or 423 billion Kazakhstani tenge. The arrangement will be effective for three years and could be extended by mutual agreement between the two sides, it said.
Reuters
23-03-2025
- Business
- Reuters
Turkish central bank to meet bank executives, banking sources say
ISTANBUL, March 23 (Reuters) - Turkish Central Bank Governor Fatih Karahan will meet with board members of Turkey's Banks Association (TBB) on Sunday to discuss recent developments in the market, three banking sources with the knowledge of the matter said. Turkish lira, stocks and bonds suffered heavy declines since Wednesday when Istanbul Mayor Ekrem Imamoglu, the main political rival to President Tayyip Erdogan, was detained. A Turkish court jailed Imamoglu pending trial over graft charges on Sunday. He denies the charges. Karahan's meeting with TBB will start at 1200 GMT, the sources said. The central bank declined to comment on the meeting.
