TUSIAD Turkey Letter: 16 July 2013
ECONOMY & ENERGY
• Turkey signals interest-rate rise
• Current Account deficit exceeds expectations in May
• Davutoḡlu meets new Syrian opposition leader and Mideast envoys over Egypt
• Parliament curtails army powers
ECONOMY & ENERGY
Turkey signals interest-rate rise
Turkey’s Central Bank may throw its most powerful tool yet into the battle against currency weakness, signaling an interest-rate rise as soon as next week after recent market interventions failed to stem the lira’s slide. Central bank Governor Erdem Başçı said on July 14 the policy makers will consider “a measured step to widen the interest-rate corridor” that ranges from 3.5% to 6.5% at its regular monthly meeting July 23. The corridor allows policy makers to vary borrowing costs daily in an effort to meet targets ranging from economic growth to financial stability
Wall Street Journal, July 15, 2013, Turkey Signals Interest-Rate Rise
Current Account deficit exceeds expectations in May
Turkey’s current account deficit stood at $31.92 billion in the January-May period of 2013, indicating an increase of $5.8 billion over the same period of the previous year, the Central Bank announced today. While the deficit decreased to $7.52 billion in May from $8.17 billion in the previous month, it was still higher than the expected figures, which were around $6.6 billion.
Hürriyet Daily News, July 11, 2013, Turkey’s current account deficit above expectations
Davutoḡlu meets new Syrian opposition leader and Mideast envoys over Egypt
On July 9, Foreign Minister Ahmet Davutoḡlu met with Ahmad Jarba, the new President of the opposition Syrian National Coalition (SNC), and the accompanying delegation at the Foreign Ministry residence in Ankara. Stating that Turkey will continue to support the Syrian people, Davutoḡlu noted that the SNC was the only representative of the Syrian people for Turkey. For his part, Jarba said that it was important for him to visit Turkey shortly after he was elected the head of the SNC. Jarba also thanked Turkey for not leaving the Syrian people alone during their hard times.
On July 11, Davutoḡlu met with Turkish ambassadors to the Middle East and to some key capitals to discuss the latest developments in the region. Turkish ambassadors to US, Russia, the United Nations, European Union and NATO along with Turkey’s ambassadors in the Middle East participated in the meeting in Ankara.
Turkish Press Review, July 10, 2013, Davutoḡlu meets new Syrian opposition leader
Turkish Press Review, July 12, 2013, Davutoḡlu meets with Mideast envoys over Egypt
Parliament curtails army powers
The Turkish Parliament on July 13 amended an army regulation that had paved the way for military intervention in politics. The original rules gave the military responsibility of preserving the Republic of Turkey, a clause previously used as a justification for coups. Article, No. 35, now restricts the army to “defending the Turkish nation against external threats and dangers,” the semiofficial Anatolian News Agency reported.
New York Times, July 13, 2013, Turkish lawmakers move to curb army’s political power
BBC, July 13, 2013, Turkey parliament curtails army powers
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