Latest news with #CentralBankofTurkey
See - Sada Elbalad
5 days ago
- Business
- See - Sada Elbalad
Moody's Upgrades Turkey's Credit Rating to ‘Ba3' with Stable Outlook
Taarek Refaat Moody's Investors Service on Friday upgraded the country's credit rating to 'Ba3' from 'B1', citing an improved track record in monetary policy, easing inflation, and narrowing macroeconomic imbalances. The agency also revised Turkey's outlook to 'stable' from 'positive', indicating a more balanced view of the country's economic trajectory amid ongoing political and external risks. 'The upgrade reflects an increasingly credible track record of policymaking, particularly the central bank's commitment to a monetary policy framework that sustainably reduces inflationary pressures,' Moody's said in its statement. The upgrade comes just one day after the Central Bank of Turkey surprised markets by cutting its key interest rate by 300 basis points to 43%, resuming its monetary easing cycle after a brief pause due to political volatility earlier this year. Since President Recep Tayyip Erdoğan's reelection in 2023, Turkey has reversed course from years of unorthodox economic management. The government has embraced more conventional policies, including aggressive interest rate hikes, tighter credit controls, and a return to market-based financial mechanisms. These efforts appear to be bearing fruit. Official data show that annual inflation dropped to 35% in June 2025, down sharply from 72% a year earlier. Meanwhile, the Turkish lira has shown signs of stabilization, and foreign currency reserves—once severely depleted—have started to recover. However, the outlook remains tempered by lingering political uncertainties. In March, investor sentiment was rattled after the arrest of Istanbul Mayor Ekrem İmamoğlu, a leading opposition figure and key challenger to Erdoğan. The incident triggered a sudden hike in interest rates and a temporary drain on foreign reserves. Despite such tensions, international agencies are recognizing Turkey's shift toward orthodox economic policy. Earlier this month, S&P Global Ratings affirmed Turkey's credit rating and also maintained a stable outlook. While the 'Ba3' rating marks an improvement, it remains within non-investment grade, commonly referred to as 'junk status.' Nevertheless, it signals that Turkey's creditworthiness is on the mend, potentially boosting investor interest and lowering borrowing costs for the government and private sector. As Turkey navigates the complexities of economic reform and political headwinds, the coming months will test whether the central bank can maintain its current course without external shocks or policy reversals. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Sports Get to Know 2025 WWE Evolution Results News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" Arts & Culture Hawass Foundation Launches 1st Course to Teach Ancient Egyptian Language
See - Sada Elbalad
7 days ago
- Business
- See - Sada Elbalad
Turkey Cuts Interest Rates for First Time Since March as Inflation Slows
Taarek Refaat The Central Bank of Turkey lowered its key interest rate on Thursday, signaling cautious optimism as inflation shows signs of easing and financial markets regain composure after weeks of political turbulence. The central bank's Monetary Policy Committee (MPC) reduced the benchmark one-week repo rate to 43% from 46%, exceeding market expectations for a 250-basis-point cut. The overnight lending rate was lowered to 46% from 49%, and the overnight borrowing rate to 41.5% from 44.5%. The rate cut marks a resumption of monetary easing, which had been on pause since March amid political unrest triggered by the arrest of Istanbul Mayor Ekrem İmamoğlu, a key opposition figure and potential challenger to President Recep Tayyip Erdoğan. In its statement accompanying the decision, the MPC reaffirmed its commitment to a tight monetary stance 'until price stability is firmly established.' 'The disinflation process will be supported by curbing domestic demand, strengthening the real value of the lira, and improving inflation expectations,' the statement said. It added that future rate decisions will be assessed on a meeting-by-meeting basis, with a continued focus on inflation outlooks. The decision follows a sharper-than-expected slowdown in annual inflation, which declined to 35.1% in June, edging the central bank closer to its year-end target of 24%. Inflation had peaked at 75% in May 2024, making Turkey one of the world's most inflation-prone economies at the time. Turkish markets reacted with relative calm. The Borsa Istanbul 100 Index initially rose by 1% before paring gains to a 0.5% increase by mid-afternoon. Lira-denominated bonds trimmed earlier losses, with the 10-year yield falling to 31.24%. The Turkish lira held largely steady against the dollar. The easing move reflects growing confidence within the central bank, under Governor Fatih Karahan, that financial volatility has cooled since the post-arrest selloff earlier this year. Following İmamoğlu's detention, markets were rattled by protests and political uncertainty, prompting the central bank to raise rates to 46% in April in a defensive move to shore up the currency. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Sports Get to Know 2025 WWE Evolution Results News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks
Forbes
02-07-2025
- Business
- Forbes
Central Banks Buy 20 Tonnes Of Gold In May, Says World Gold Council
Photo by michael norcia/Sygma via Getty Images Sygma via Getty Images Global central banks bought another 20 tonnes of gold in May as conflict erupted in the Middle East, the World Gold Council (WGC) announced on Wednesday. Total purchases were up from 12 tonnes in April, but lower than the 12-month average of 27 tonnes, data from the organization showed. The WGC commented that 'fresh tensions in the Middle East may have reinforced the strategic appeal of gold for central banks looking to safeguard reserves against geopolitical shocks.' Changes to central bank gold holdings since early 2022. World Gold Council Gold demand has risen sharply in recent years, driven by military actions in Europe and the Middle East, and concerns over the impact of fresh trade tariffs on global growth and inflation. Central bank buying has also risen as reserve managers have sought to diversify their holdings away from the US dollar and towards other paper currencies and gold bullion. Gold prices surged to all-time peaks just above $3,500 per ounce in late April before falling as profit taking set in and market confidence improved. It was last changing hands at $3,334.40, still up 43% year on year. Biggest Buyers The National Bank of Kazakhstan was the busiest bullion buyer in May, the WGC said. It added seven tonnes over the month to take its holdings to 299 tonnes. This raised total purchases in the year to date to 15 tonnes. The Central Bank of Turkey and National Bank of Poland (NBP) were tied in second place on the buyers' list, both institutions purchasing six tonnes. As a consequence, 'the NBP remains the largest net purchaser of gold in 2025, adding 67 tonnes,' the WGC said. Changes to central bank gold holdings this year. World Gold Council Both the People's Bank of China and Czech National Bank added two tonnes of gold in May. The National Bank of the Kyrgyz Republic, National Bank of Cambodia, the Central Bank of the Philippines, and the Bank of Ghana each purchased one tonne of gold. Gold Sellers On the selling side, the Monetary Authority of Singapore offloaded the most gold – it emptied its vaults of five tonnes of the precious metal. Next up came the Central Bank of the Republic of Uzbekistan and the Deutsche Bundesbank, which each sold one tonne of material in May. May's activity cements Uzbekistan as the largest seller so far in 2025, racking up 27 tonnes of gold sales. Singapore is in second place, with sales coming in at 10 tonnes. Rising Demand According to the WGC, central banks have bought 1,000 tonnes of gold annually during the last three years. That compares with between 400 and 500 tonnes during the preceding decade. A recent Council poll showed that officials plan to continue building their metal reserves, too. A whopping 95% of 72 respondents said they expect global central bank reserves to rise over the next 12 months. Furthermore, 43% of those tipped their own holdings to increase over the period. These numbers were up from 81% and 29% respectively in 2024, and represented all-time highs. The WGC also noted that '76% of respondents believe that gold will hold a (moderately or significantly) higher share of total reserves five years from now, up from 69% last year.'
Yahoo
22-04-2025
- Business
- Yahoo
Can Bitcoin Benefit From Trump Firing Powell? Turkey's Lira Crisis May Provide Clues
The week has begun on an interesting note, with the U.S. dollar crashing to three-year lows alongside losses on Wall Street, yet bitcoin, which usually follows the sentiment on Wall Street, stands tall.[PLEASE CAN HAVE A PRICE HERE AND A QUANTIIFICATION - THE BTC PRICE ISN'T THAT TALL] This could just be the beginning. [BEGINNING OF WHAT] The shift away from the USD and toward seizure and censorship-resistant assets like BTC and stablecoins could accelerate if President Donald Trump follows through with his reported plans to fire Federal Reserve Chairman Jerome Powell, which have pushed the DXY and U.S. stock markets lower today. That's the lesson from Turkey, which has seen its currency, the lira (TRY), collapse over the years mainly due to President Recep Tayyip Erdogan's repeated interference in the central bank's operations. The sliding lira has triggered a capital flight into BTC and stablecoins since at least 2020-21. Trump has feuded publicly with the Federal Reserve and its chairman, Jerome Powell, for years, criticizing Powell for being too late on rate cuts even during his first term when interest rates were way lower than today. However, Trump's criticism has recently reached a fever pitch with reports suggesting he is looking for ways to get rid of Powell, who recently warned of stagflation even as the President reiterated calls for lower borrowing costs while suggesting there is no inflation. Powell's patient approach follows a trade war-led spike in survey-based measures of inflation expectations, which could always become self-fulfilling. Still, on Monday, Trump went further, calling Powell a "major loser" and warning that the economy could slow down unless interest rates are immediately lowered. Erdogan began interfering in the central bank's operations in 2019, and since then, the lira has collapsed sevenfold from 5.3 per dollar to 38 per dollar. It all started with Turkey's inflation rate reaching double digits in 2017. It remained elevated in the subsequent year, which prompted the country's central bank to increase the one-week repo rate from 17.5% to 24% in September 2018. The move likely didn't go well with Erodgan, who issued the first decree dismissing Central Bank of Turkey (CBT) governor Murat Cetinkaya in July 2019. From then on until the end of 2021, Erdogan issued multiple decrees dismissing and hiring several CBT officials. Amid all this, inflation remained elevated, and the lira continued to depreciate at an alarming rate. "We certainly don't believe in high interest rates. We will pull down inflation and exchange rates with low-rate policy … High rates make the rich richer, the poor poorer. We won't let that happen," Erdogan said in 2021. As of 2025, Turkey faces an inflation rate of nearly 40%, according to data source TradingEconomics. This episode serves as a cautionary tale for Trump, highlighting that tampering with central bank independence — especially in the face of looming inflation — can erode investor confidence and send the domestic currency into a tailspin. This does not necessarily mean that the USD will crash exactly like lira but may see significant devaluation. Perhaps it could prove even more destabilizing for global markets, considering the dollar is a global reserve currency, and the U.S. Treasury market is the bedrock for international finance. If better sense fails to prevail, U.S. investors may feel incentivized to move away from U.S. assets and into BTC and other alternative investments, just as Turks did.
See - Sada Elbalad
21-03-2025
- Business
- See - Sada Elbalad
Turkey's Central Bank Raises Overnight Rate to 46% in Surprise meeting
Taarek Refaat The Central Bank of Turkey raised its overnight lending rate to 46% from 44% during an extraordinary meeting, amid turmoil in Turkish markets and a record-low lira. The Central Bank said in a statement posted on its website that the Monetary Policy Committee (MPC) convened to exchange views on recent developments in financial markets and that, after assessing the risks these developments may pose to inflation expectations, measures were taken to support monetary policy tightening. The Central Bank also maintained the key repo rate for one week and the Central Bank's overnight borrowing rate at 42.5% and 41%, respectively. The Central Bank added in its statement that measures related to Turkish lira and foreign currency liquidity were taken to limit market volatility. The Turkish Central Bank said in a statement that additional measures will be taken to maintain the sound functioning of financial markets when necessary, and that monetary policy will be tightened if a significant and sustained decline in inflation is expected. Turkish public opinion was rocked yesterday by the arrest of Istanbul Mayor Ekrem İmamoğlu, which led to the Turkish lira falling to a new record low and the Istanbul Stock Exchange index losing 7% of its value. Today, the 1 United States Dollar equals 37.99 Turkish lira. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Egypt confirms denial of airspace access to US B-52 bombers News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content Lifestyle Pistachio and Raspberry Cheesecake Domes Recipe Videos & Features Bouchra Dahlab Crowned Miss Arab World 2025 .. Reem Ganzoury Wins Miss Arab Africa Title (VIDEO) News Ireland Replaces Former Israeli Embassy with Palestinian Museum News Israeli PM Diagnosed with Stage 3 Prostate Cancer Lifestyle Maguy Farah Reveals 2025 Expectations for Pisces News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple
