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Turkey Letter: 6 June 2016

Foreign Policy

  • German Parliament Recognizes Armenian Genocide, Angering Turkey
  • Greek Effort to Send Migrants to Turkey Goes Slowly
  • US, PYD hit ISIL in Syria, Turkey doesn’t take part
  • Coalition strikes, Turkish shelling kill 14 Islamic State militants in Syria
  • Turkish Businessman Reza Zarrab Seeks House Arrest Instead of Jail in Iran Sanctions Case

Economy & Energy

  • Falling Lira Cushioned by Turks Dumping Foreign-Currency Savings
  • Turkey’s Improving Core Inflation Makes Room for More Rate Cuts
  • Turkey Markets Jump as Fed, Slowing Inflation Fuel Rate-Cut Bets
  • Turkish company ‘agrees $4.2-billion deal to build Iran power plants’
  • PayPal to Exit Turkey After Regulator Denies Payments License

Domestic Politics

  • Turkey’s top court rejects petition to strike down immunity bill
  • Turkish nationalist leader’s weakening grip poses challenge for Erdogan
  • Turkey declares curfew in southeast in fight against Kurdish militants
  • Turkish warplanes target Kurdish militants, at least 27 killed

Foreign Policy

German Parliament Recognizes Armenian Genocide, Angering Turkey

The German Parliament overwhelmingly adopted a symbolic but fraught resolution on Thursday declaring the killings of Armenians by Ottoman Turks in 1915 a genocide, escalating tensions with Turkey at a diplomatically delicate juncture.

New York Times, German Parliament Recognizes Armenian Genocide, Angering Turkey, June 2, 2016


Greek Effort to Send Migrants to Turkey Goes Slowly

Greece wants judges to replace members of an asylum appeals board that has been slow to deport refugees and migrants to Turkey, according to Greek officials.

Wall Street Journal, Greek Effort to Send Migrants to Turkey Goes Slowly, June 3, 2016


US, PYD hit ISIL in Syria, Turkey doesn’t take part

The United States has launched a major operation against the Islamic State of Iraq and the Levant (ISIL) near the Turkish border with the Syrian Democratic Forces (SDF), with Turkish sources confirming that the Turkish military has not taken part in the operation.

Hurriyet Daily News, US, PYD hit ISIL in Syria, Turkey doesn’t take part, June 2, 2016


Coalition strikes, Turkish shelling kill 14 Islamic State militants in Syria

Cross-border shelling by the Turkish army and air strikes by U.S.-led coalition aircraft killed 14 Islamic State militants in Syria, state-run Anadolu Agency cited Turkey’s military as saying on Saturday.

Reuters, Coalition strikes, Turkish shelling kill 14 Islamic State militants in Syria, June 4, 2016


Turkish Businessman Reza Zarrab Seeks House Arrest Instead of Jail in Iran Sanctions Case

Federal prosecutors and defense lawyers sparred at a lengthy bail hearing on Thursday over whether Turkish businessman Reza Zarrab, accused of helping Iranian companies evade U.S. sanctions, should be released from jail pending his trial.

Wall Street Journal, Turkish Businessman Reza Zarrab Seeks House Arrest Instead of Jail in Iran Sanctions Case, June 2, 2016


Economy & Energy

Falling Lira Cushioned by Turks Dumping Foreign-Currency Savings

International investors may be steering clear of Turkey’s lira as the country lurches from one political crisis to the next, but locals are showing no such reservations.

Bloomberg, Falling Lira Cushioned by Turks Dumping Foreign-Currency Savings, June 5, 2016


Turkey’s Improving Core Inflation Makes Room for More Rate Cuts

Turkey’s annual core inflation registered the biggest fall in over a year, giving more encouragement to monetary policy makers who began cutting borrowing costs in March.

Bloomberg, Turkey’s Improving Core Inflation Makes Room for More Rate Cuts, June 3, 2016


Turkey Markets Jump as Fed, Slowing Inflation Fuel Rate-Cut Bets

Turkey’s bonds surged with stocks and the lira gained as core inflation slowed to a nine-month low and speculation grew U.S. policy makers may put off an interest-rate increase, giving the central bank more room to continue an easing cycle that started in March.

Bloomberg, Turkey Markets Jump as Fed, Slowing Inflation Fuel Rate-Cut Bets, June 3, 2016


Turkish company ‘agrees $4.2-billion deal to build Iran power plants’

Turkish energy company Unit International has reached a deal worth $4.2 billion with Iran’s Energy Ministry to build seven natural gas power plants, in what it said was the biggest investment in Iran since the lifting of sanctions.

Hurriyet Daily News, Turkish company ‘agrees $4.2-billion deal to build Iran power plants’, June 5, 2016


PayPal to Exit Turkey After Regulator Denies Payments License

PayPal Holdings Inc. is suspending its operations in Turkey after the local banking regulator ordered it to cease payment transfers in a move that is likely to reverberate across the country’s nascent but fast-growing online marketplace.

Wall Street Journal, PayPal to Exit Turkey After Regulator Denies Payments License, May 31, 2016


Domestic Politics

Turkey’s top court rejects petition to strike down immunity bill

Turkey’s top court has rejected an appeal by a group of opposition lawmakers seeking to strike down legislation stripping scores of lawmakers of their legislative immunity from prosecution.

Hurriyet Daily News, Turkey’s top court rejects petition to strike down immunity bill, June 3, 2016


Turkish nationalist leader’s weakening grip poses challenge for Erdogan

As he battles to cling to power after nearly two decades as leader of Turkey’s nationalist opposition, Devlet Bahceli is arguably more important to the future of Turkish politics than ever before.

Reuters, Turkish nationalist leader’s weakening grip poses challenge for Erdogan, June 3, 2016


Turkey declares curfew in southeast in fight against Kurdish militants

Turkey declared a round-the-clock curfew in rural areas near the city of Diyarbakir in southeast Turkey on Saturday, ahead of a planned military operation targeting Kurdish militants, the provincial governor’s office said.

Reuters, Turkey declares curfew in southeast in fight against Kurdish militants, June 4, 2016


Turkish warplanes target Kurdish militants, at least 27 killed

Turkish warplanes struck Kurdish militant targets in northern Iraq and southeast Turkey and the army killed 27 fighters near its borders with Iraq and Iran, the armed forces said on Sunday.

Reuters, Turkish warplanes target Kurdish militants, at least 27 killed, June 5, 2016