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Turkey Letter 5 August 2019 

Foreign Policy: 

  • Turkish, US officials meet for talks on Syria safe zone 
  • Turkey says all parties should cooperate in eastern Mediterranean 
  • Erdogan Says Turkey to Deploy Troops East of Euphrates 
  • Turkey sends delegation to China to observe Uighur situation 

Economy & Energy: 

  • Risk of Turkish banking crisis has eased – S&P Global 
  • Turkish central bank hikes reserve requirement on forex deposits 
  • Turkey Inflation to Hit a Bump as Central Bank Tees Up Rate Cuts 
  • JPMorgan Is Banking on Pent-Up Demand to Reignite Turkey IPOs 
  • Turkey’s central bank governor defends sacking of predecessor 

Domestic Politics: 

  • Turkey starts filling huge Tigris river dam, activists say 
  • Turkey moves to oversee all online content, raises concerns over censorship 

Foreign Policy  

Turkish, US officials meet for talks on Syria safe zone 

Turkish and American military officials met Monday for negotiations about establishing a safe zone in northeastern Syria to address Ankara’s concerns about U.S-allied Syrian Kurdish-led forces in that region. 

AP News, Turkish, US officials meet for talks on Syria safe zone, 5 August 2019 


Turkey says all parties should cooperate in eastern Mediterranean 

Turkey’s Foreign Minister Mevlut Cavusoglu called on all parties in the eastern Mediterranean to cooperate with Turkey to solve problems in the area. 

Reuters, Turkey says all parties should cooperate in eastern Mediterranean, 5 August 2019 


Erdogan Says Turkey to Deploy Troops East of Euphrates 

Turkey can no longer “stay silent” about the threat posed by U.S.-backed Syrian Kurdish fighters and will deploy troops east of the Euphrates River, President Recep Tayyip Erdogan said Sunday. 

Bloomberg, Erdogan Says Turkey to Deploy Troops East of Euphrates, 4 August 2019 


Turkey sends delegation to China to observe Uighur situation 

Turkey’s foreign minister says a delegation will visit China’s northwestern Xinjiang region to observe the situation of minority Uighur Turks. 

AP News, Turkey sends delegation to China to observe Uighur situation, 30 July 2019 


Economy & Energy 

Risk of Turkish banking crisis has eased – S&P Global 

The risk of full-blown banking crisis in Turkey has eased in recent months as the lira has stabilised, credit rating agency S&P Global said on Monday. 

Reuters, Risk of Turkish banking crisis has eased – S&P Global, 5 August 2019 


Turkish central bank hikes reserve requirement on forex deposits 

Turkey’s central bank increased the reserve requirement ratios on forex deposits and participation funds by 100 basis points for all maturity brackets, in a move to support financial stability, it said on Monday. 

Reuters, Turkish central bank hikes reserve requirement on forex deposits, 5 August 2019 


Turkey Inflation to Hit a Bump as Central Bank Tees Up Rate Cuts 

A slowdown in Turkish inflation probably took a pause as the government rebuilds its coffers with higher taxes while the central bank loosens monetary policy. 

Bloomberg, Turkey Inflation to Hit a Bump as Central Bank Tees Up Rate Cuts, 4 August 2019 


JPMorgan Is Banking on Pent-Up Demand to Reignite Turkey IPOs 

JPMorgan Chase & Co. expects Turkey’s capital markets to come back to life as inflation and interest rates decline, reigniting investor interest as the economy stabilizes. 

Bloomberg, JPMorgan Is Banking on Pent-Up Demand to Reignite Turkey IPOs, 2 August 2019 


 Turkey’s central bank governor defends sacking of predecessor 

Turkey’s new central bank governor has defended the sacking of his predecessor as he signaled that further rate cuts were likely in the months ahead. 

Financial Times, Turkey’s central bank governor defends sacking of predecessor, 31 July 2019 


Domestic Politics 

Turkey starts filling huge Tigris river dam, activists say 

Turkey has started filling a huge hydroelectric dam on the Tigris river, a lawmaker and activists said, despite protests that it will displace thousands of people and risks creating water shortages downstream in Iraq. 

Reuters, Turkey starts filling huge Tigris river dam, activists say, 2 August 2019 


Turkey moves to oversee all online content, raises concerns over censorship 

Turkey on Thursday granted its radio and television watchdog sweeping oversight over all online content, including streaming platforms like Netflix and online news outlets, in a move that raised concerns over possible censorship. 

Reuters, Turkey moves to oversee all online content, raises concerns over censorship, 1 August 2019