Erdogan appoints himself chairman of Turkey's sovereign wealth fund

Soc Gen exchange rate forecast for EURUSD

Turkey ruled on Thursday that property sales, rental contracts and leasing transactions must be made in lira from now on, halting the use of foreign currencies for such deals in a fresh step to support the ailing local currency.

"It nearly seems like it's a game of "good cop, bad cop" being played out between the Turkish authorities - with President Erdogan on the one hand still making statements regarding his dislike of interest rates and. a very sizeable reaction from the central bank in response to the recent inflationary and geopolitical developments", she said.

The Turkish lira gained to its strongest level against the dollar this month amid speculation that the central bank will increase interest rates on Thursday to stem double-digit inflation.

The lira TRYTOM=D3 has lost some 40 percent of its value against the dollar this year over concerns about Erdogan's influence on monetary policy and a diplomatic spat between Turkey and the United States.

There had been indications from Turkey's central bank that it would raise rates, after inflation came in at almost 18% in August, according to official data.

While the lira's plight has made it "rational to expect at least 1000 basis points" added to interest rates, opposition to higher borrowing costs among Turkish officials made a smaller increase more realistic, Rabobank currency strategist Piotr Matys said before the decision.

The central bank said there was still an upside risk to Turkey's inflation outlook from what it called a deterioration in pricing behaviour, despite weaker domestic demand conditions.

The fall in the value of the lira in recent months has pushed up the price of everyday items in Turkey and raised fears the country is sliding into an economic crisis.

"Accordingly, the Committee has chose to implement a strong monetary tightening to support price stability", it said.

Neil Wilson, chief market analyst at said: "This was a definite statement from policymakers, but the risk now is that the market tries to test the central bank's resolve: the horse may have already bolted".

It vowed the tight stance in monetary policy would be "maintained decisively until inflation outlook displays a significant improvement".

It stood at 6.4550 against the dollar at 1012 GMT, weakening sharply from Wednesday's close after Erdogan said high inflation was a result of the central bank's wrong steps.

He earlier charged the bank with failing to control inflation and again aired his unorthodox view that low rates bring inflation down.

"Interest rates are the cause, inflation is the result".

The bank later said funding would be provided via the policy rate, the one week repo auction rate, instead of through overnight lending from September 14.

As well as being seen to undermine the independence of the central bank, Erdogan in July stunned markets by appointing his son-in-law Berat Albayrak as finance minister.

Related News:

  • 'Dybala will leave Juventus in January'

    'Dybala will leave Juventus in January'

    Manchester United, Manchester City and Chelsea have been heavily linked with Dybala in recent months as have La Liga giants Barcelona and Real Madrid .
    'Diablo III' Invades 'Overwatch' With New Exclusive Sombra Skin

    'Diablo III' Invades 'Overwatch' With New Exclusive Sombra Skin

    Except you'll be able to get your hands on some of that content eventually, whether or not you buy into the virtual ticket. An Overwatch player on Reddit spotted the skin in-game and took a bunch of screenshots showing off the Demon Hunter skin.
    John Terry decides against move to Spartak Moscow

    John Terry decides against move to Spartak Moscow

    It comes after the Blues legend rejected a move to Spartak Moscow , having decided it would not be in his family's interests. The 37-year-old looked set to join the Russian club after undergoing a medical over the weekend ahead of a free transfer.
  • Despite Trump tweet, Ford says it won't make hatchback in U.S.

    Despite Trump tweet, Ford says it won't make hatchback in U.S.

    Chinese production of the Focus Active will continue as planned to service the local and other foreign markets. By phasing out less-profitable sedans, Ford will be freeing up money to invest in electrifying its SUV lineup.
    Dustin Johnson issues statement amid alleged split from Paulina Gretzky

    Dustin Johnson issues statement amid alleged split from Paulina Gretzky

    She wrote: "I'd like to do my best to address the current rumours in circulation". 'Nor have we had any prior relationship. The rumor is that Gretzky and Johnson have split up and it may have been caused by golf Socialite Yassie Safai .

    Solar plan to power half the world ‘could turn Sahara green’

    A series of mammoth wind and solar installations intends to increase rainfall and abet vegetation in Africa's Sahara Desert . Unlike the wind farms, the solar arrays had very little effect on wind speed.
  • Six People Dead After Shooting In Bakersfield

    Six People Dead After Shooting In Bakersfield

    Kern County Sheriff's deputies gather near the scene in Bakersfield California , where a man shot five people dead. When the deputy confronted him at gunpoint the man shot himself in the chest, the sheriff said.
    Pope calls meeting of key bishops on sexual abuse: Vatican

    Pope calls meeting of key bishops on sexual abuse: Vatican

    The US bishops next meet as a body in November in Baltimore, where they are expected to debate and vote on DiNardo's plans. In a first for the Catholic Church , Pope Francis will hold a bishops' summit to deal with sexual abuse in the clergy.
    Oldest known artwork found in Mossel Bay

    Oldest known artwork found in Mossel Bay

    The team first confirmed that the lines were ochre, and conducted a series of experiments to figure out how the drawing was made. Engraved ochre slabs with various designs, including cross-hatched patterns, were also found in these older layers.
  • Mac Miller’s Funeral To Be Held In Pittsburgh

    It is believed he died from an overdose but his death certificate states the cause of death is still unknown listed as "deferred". Soon after the 911 call came in, LAPD and Fire officials swarmed the scene and the performer was pronounced dead at his home.
    As Hurricane Florence nears, expat Islander braces for storm in North Carolina

    As Hurricane Florence nears, expat Islander braces for storm in North Carolina

    SC authorities have turned four motorways into one-way routes away from the coast to speed the exodus. We're fully prepared, food, medical, everything you can imagine, we are ready.

    Hurricane Florence's uncertain track sows fear; 10 million in crosshairs

    For example, the seas off of Wilmington, North Carolina have risen 7.5 inches since 1935, according to NOAA. But it's such a large storm that the rain will keep coming down in the region no matter where it wanders.

Most liked

Pluto remained a planet
This supports the assertion that a planet should be defined by the intrinsic qualities of a body, rather than by external factors. Part of that stems from the debate surrounding whether or not to classify Pluto as a "real planet " in the first place.

Cuomo campaign pins blame for Cynthia Nixon flyer on staffer
The Snatched star also revealed that she will be voting for Zephyr Teachout for Attorney General of NY and Jumaane D. Not only does he need to win big, but his lieutenant governor, Kathy Hochul, is facing a tight race.

House of Fraser and Debenhams merger has ‘been discussed’
Ahead of the meeting, three shareholder advisory bodies are said to have told investors not to support Mr Hellawell's re-election. Mr Hellawell will retire with immediate effect following today's AGM and will be replaced by non-executive director David Daly.

Google Cloud appoints new AI head
At Google, Li's mantra was "democratising AI" - spreading the advanced tools to more software developers and academic researchers. Andrew Moore, dean of the school of computer science at Carnegie Mellon University, Google announced on Monday.

Middle-aged wine drinkers urged to have a day off booze
Also, alcohol is a depressant - without it floating around in your system, you should feel lighter and generally more positive. However, in recent years there has been growing evidence linking alcohol consumption with cancer among other health risks.

United States invites China to trade talks as tariffs loom: White House adviser
Just six percent, meanwhile, said they would consider moving factories to US soil. -China talks would delay the duties. AmCham China and AmCham Shanghai urged the Trump administration to re-think its approach.

Cancer will kill almost 10 million people in 2018, researchers estimate
The rise, from 14.1 million cases and 8.2 million deaths in 2012 , is partly due to a growing and ageing population. They say because of this countries need to consider tailoring how they try to prevent and treat cancer.

Toby Alderweireld: 'I never wanted to leave Tottenham Hotspur for Man Utd'
The Belgian worldwide has iterated that he never wanted to leave Tottenham , and that the rumours suggesting the same were untrue. Alderweireld and Tottenham are back in Premier League action this Saturday when they welcome Liverpool to Wembley.

Alphonse Areola ‘wanted Chelsea move’ after Buffon arrival
And the Blues coach believes the PSG stopper should be playing ahead of France captain Hugo Lloris . Lollichon went on to lament how the young keeper has been treated by PSG.

TI backs Cynthia Nixon for New York Governor
By necessity as much as design, Nixon has focused her limited resources on digital outreach and get-out-the-vote activities. Cuomo Bridge just a day after Cuomo held a celebratory ribbon cutting.

E-cigarette use is an 'epidemic', FDA chief says
The owners of Vuse, MarkTen XL, Blu and Logic did not immediately respond to requests for comment. The steps announced Wednesday are just the initial elements of these new efforts, Gottlieb said.

Liverpool winger Shaqiri: Klopp always demanding more
Previously at Stoke City , Liverpool triggered Shaqiri's £13million release clause this summer. He's been around a long time at big clubs and has great experience. "That has to be our aim".

Russian bombers intercepted by US fighter jets west of Alaska
A group of Russian nuclear-capable aircraft ventured near Alaska on september 11 before being intercepted by U.S. The incident marks the second time US F-22s have intercepted Russian bombers off the coast of Alaska this month.

1 in 9 went hungry last year, U.N. report says
This year's report focuses on the role of climate variability and extremes to explain the observed trends in food security . Malnutrition due to food insecurity and accessibility is also being threatened by conflict and violence, the report noted.

Hurricane Florence packing a 'Mike Tyson punch', says top U.S. official
Wednesday, Florence was 435 miles from Wilmington, N.C., moving northwest at 16 mph, according to the National Hurricane Center . Duke Energy has around 4 million customers in North and SC , and says it could take several weeks to restore the electricity.