Turkey Letter 8 July 2019

Foreign Policy:

  • Turkey’s Erdogan meets head of Libya’s UN-supported gov’t
  • Russia readies S-400 missiles for Turkey amid warnings of U.S. sanctions on NATO ally
  • Turkey offers to mediate between US, Iran
  • Turkey’s Erdogan affirms importance of ties with China

Economy & Energy:

  • Turkish Lira Falls After Erdogan Ousts Central Bank Chief
  • EU, Cyprus protest as second Turkish ship plans to drill off island
  • Turkey Assets Fall as Traders Fret Over Central Bank Credibility
  • Erdogan Dismisses Governor of Turkey’s Central Bank

Domestic Politics:

  • Former Erdogan Ally Resigns From AK Party, Hints at Rival Party
  • Turkey orders arrest of 122 military personnel over suspected Gulen links

Foreign Policy

Turkey’s Erdogan meets head of Libya’s UN-supported gov’t

Turkey’s president has met with the head of Libya’s U.N.-recognized government, following heightened tensions between Turkey and forces loyal to a rival Libyan authority.

AP, Turkey’s Erdogan meets head of Libya’s UN-supported gov’t, 6 July 2019


Russia readies S-400 missiles for Turkey amid warnings of U.S. sanctions on NATO ally

Russia will begin delivering its S-400 air defense system to NATO member Turkey in the coming days, a Kremlin spokesman said Friday, in a deal likely to trigger U.S. sanctions and test the bonds of the Western military alliance.

Washington Post, Russia readies S-400 missiles for Turkey amid warnings of U.S. sanctions on NATO ally, 5 July 2019


Turkey offers to mediate between US, Iran

Turkish President Recep Tayyip Erdogan says he is willing to mediate between the United States and Iran to ease tensions over Iran’s nuclear program.

Washington Post, Turkey offers to mediate between US, Iran, 4 July 2019


Turkey’s Erdogan affirms importance of ties with China

Turkish President Recep Tayyip Erdogan, an ostensible U.S. NATO ally, affirmed the importance of ties with key American rival China at a meeting with Chinese President Xi Jinping in Beijing on Tuesday.

Washington Post, Turkey’s Erdogan affirms importance of ties with China, 2 July 2019


Economy & Energy

Turkish Lira Falls After Erdogan Ousts Central Bank Chief

The Turkish lira dropped sharply on Monday as President Recep Tayyip Erdogan’s decision to fire the governor of the central bank left investors worried about economic mismanagement in a country dealing with high inflation and sluggish growth.

Wall Street Journal, Turkish Lira Falls After Erdogan Ousts Central Bank Chief, 8 July 2019


EU, Cyprus protest as second Turkish ship plans to drill off island

A Turkish ship planning to drill for oil and gas close to Cyprus dropped anchor off the island on Monday, triggering a strong protest from Nicosia and a rebuke from the European Union.

Reuters, EU, Cyprus protest as second Turkish ship plans to drill off island, 8 July 2019


Turkey Assets Fall as Traders Fret Over Central Bank Credibility

Turkish assets came under fire after President Recep Tayyip Erdogan dismissed the central bank governor, fueling concern that monetary policy will be eased too quickly. Yet with rate-cuts already priced in and local bonds offering high yields, the fallout has been relatively contained.

Bloomberg, Turkey Assets Fall as Traders Fret Over Central Bank Credibility, 7 July 2019


Erdogan Dismisses Governor of Turkey’s Central Bank

President Recep Tayyip Erdogan has dismissed the governor of Turkey’s central bank, sparking fresh investor concerns over the independence of an institution that has strained to combat runaway inflation.

Wall Street Journal, Erdogan Dismisses Governor of Turkey’s Central Bank, 6 July 2019

Domestic Politics

Former Erdogan Ally Resigns From AK Party, Hints at Rival Party

Former Turkish deputy prime minister Ali Babacan said on Monday he was resigning from President Tayyip Erdogan’s AK Party over “deep differences” with the party’s direction and said that Turkey needed a new vision.

New York Times, Former Erdogan Ally Resigns From AK Party, Hints at Rival Party, 8 July 2019


Turkey orders arrest of 122 military personnel over suspected Gulen links

Turkey has ordered the arrest of 122 military personnel over suspected links to the network blamed by Ankara for orchestrating a failed military coup, prosecutors and the state-run Anadolu news agency said on Tuesday.

Reuters, Turkey orders arrest of 122 military personnel over suspected Gulen links, 2 July 2019