Turkish Lira Stability Attracts Interest Traders Amid Economic Shifts

Turkish Lira Stability Attracts Interest Traders Amid Economic Shifts

Currently, attention is turning towards the Turkish Lira, as its unusual stability appears to be a strong attraction for interest traders seeking to profit from global market fluctuations.


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Over the past three months, the Turkish Lira experienced a record decline in its value. However, recently, signs of stability have emerged, with daily losses significantly decreasing, and the expected monthly currency volatility contracting. Economic experts believe that this stability, coinciding with the rise in Turkish bond yields, creates attractive opportunities for interest traders.


According to Emre Akcakmak, Senior Advisor at “East Capital” in Dubai, he states,
“Some investors are now reconsidering their old plans,”
pointing out that the Lira exhibits a behavior resembling a floating exchange rate system,
allowing gradual changes in the currency value.


This improvement in currency volatility provides investors with opportunities to profit from short-term Turkish bonds,
while the Lira’s value rises in real terms.
In this context, Turkish Finance Minister, Mehmet Simsek,
has indicated the government’s commitment to ensuring the long-term appreciation of the currency.


Despite Barclays Bank expecting the continued decline of the Lira, experts at Goldman Sachs believe it may experience an upward trend in the coming year, accompanied by an improvement in real interest rates.









Turkey has overcome recent financial challenges by adopting new economic policies aimed at attracting investors, supported by an economic team emphasizing the market’s importance and striving to regain confidence.
Despite these improvements, obstacles persist, such as the decline in foreign exchange reserves and the high inflation rate, which may raise concerns among investors.


With these shifts in Turkey’s economy, it seems that the Turkish Lira is once again attracting the interest of interest traders,
who may benefit from the new opportunities available in this evolving economic context.



Turkish Lira Stability Attracts Interest Traders Amid Economic Shifts

Turkey seeks cooperation with the Kingdom of Saudi Arabia

Turkey seeks cooperation with the Kingdom of Saudi Arabia to transfer energy to Europe.


In the context of Turkey’s endeavor to strengthen relations with
the Kingdom of Saudi Arabia and other countries,
Turkey’s plan focuses on being the center for exporting energy to Europe,
according to the statements of the Turkish Finance Minister,
adding that Turkey’s strategic location in terms of geographical
advantage is heard to be the corridor of energy from Saudi Arabia.

To Russia that this will reduce the high cost and safe shipping,
as he indicated the necessity of cooperation with the Saudi side,
which contributes to the stability of the region,
and this saves a lot in energy and gas prices and will lead to forward aspirations



Turkish imports declined in the past

Expectations of a Fed rate hike to 5% could cause a global recession

Amazon declines in market value to less than a trillion dollars










Turkish imports declined in the past


Saudi imports from the Turkish side witnessed a significant decline in 2021 to the lowest levels in 38 years,
and the volume of trade exchange between the two countries declined during 10 years to 16.7 billion riyals,
and since then, the two countries have been seeking to strengthen relations
again in various fields and attract more investments,
This came after a visit by Turkish President Recep Tayyip Erdogan in April,
which was the first visit since 2017, in the context of correcting the course of relations between the two countries again,
and one of the main reasons for the tension in
relations was the case of the murder of journalist Jamal Khashoggi in the Saudi consulate in Turkey.



Strengthening open relations between the two parties

During the coming periods, the pace and cooperation of Saudi Arabia and Turkey will increase,
and the field will be open after the Kingdom’s plan under the slogan
“The Kingdom’s Vision 2030” and also Turkey for the year 2023,
where it will be transferred to a new stage of cooperation and we will contribute to achieving peace
and prosperity in the vicinity of the region, in addition to supporting the Turkish side to Saudi Arabia.

And also the two countries efforts to fight terrorism, so the two sides seek to strengthen relations,
investments, and trade, and Turkish relations extended to strengthening trade exchange
and cooperation also with the UAE side and an economic partnership
that facilitates business and reduces customs duties as well,
and this is a prelude to a new beginning of the era that includes cooperation


article name Turkey seeks cooperation with the Kingdom of Saudi Arabia









Expectations of a Fed rate hike to 5% could cause a global recession.


The idea of ​​raising interest rates remains to dominate the minds of Fed officials,
whatever its consequences. It is expected that the meeting that
will be held next week will carry with it a wave of economic paralysis,
as it is certain that they will not abandon the decision to raise interest rates,
which will reach nearly 5% during March 2023.


This would create a recession that would sweep
the entire world and not only the United States of America,
as mentioned by the most important economists.

The Fed meeting will be held next Wednesday at two o’clock Washington time
According to a Bloomberg survey, the committee is expected to raise the interest
rate by another 75 basis points for the fourth time in a row,
due to the rise in employment costs that appeared on Friday,
and the move away from the goal of satisfaction from the desired inflation situation.
One of the most important reasons for the Fed’s decision to raise interest rates again.



From the point of view of economic analysts,

it is difficult for the Fed officials to abandon their hard-line positions
in abandoning the interest rate hike to fight inflation,
which has reached its peak for nearly 40 years.

Point during the two successive meetings, according to what the committee stated
that 4.4% is the committee’s goal for this year,
and 4.6% will be reached during the next year before the start of the reduction,
which will start during 2024, which may cause a global recession during the coming period,
and unemployment may also worsen as well.

Fed Chairman Powell mentioned that fighting inflation by raising interest rates will be a not easy job.

Most of the Fed officials agreed that the next two years will cause the markets a major recession
with a period of zero or negative growth in the future.

This was the result of the expectations of the poll conducted before the Fed official’s meeting.
Perhaps history will repeat itself and the same goals of the eighties,
when the interest rate reached its highest levels, from the point of view of economists


article name Turkey seeks cooperation with the Kingdom of Saudi Arabia








That the Fed may be excessively

tightening its monetary policy as economists’ expectations
put the average peak target interest rates at 4.75% and that 75% of economists have warned
that there is a greater risk that the central bank will increase interest rates significantly,
and cause unimaginable burdens. Unnecessary, instead of not raising it enough,
and thus failing in the desired goal, which is to control inflation,
which has reached its peak during the past forty years.



Expectations are different among event readers, some expect 50 basis points,
and others expect 75 points. As for investors, they expected the second option,
the 75, and it is expected that the interest rate will reach 4.8 next December,
but if the Federal Reserve raises the interest rate again by seventy-five Next week,
the total of 375 basis points increases since last March,


will be the Fed’s biggest rate

hike since the 1980s when Volcker was Fed chair and was grappling
with high inflation like those days when The United States of America is going through
while it is attempting to reduce the Federal Bank of assets to 1.1 trillion dollars annually,
and economists expect the balance sheet to reach eight and a half trillion dollars
at the end of this year and will decline to 6.7 trillion dollars in December 2024,
when the Fed begins to return to the tightening policy cash gradually.


article name Turkey seeks cooperation with the Kingdom of Saudi Arabia










Amazon declines in market value to less than a trillion dollars


in light of the slowdown in growth in the fourth quarter of 2022.


The “Amazon” earnings report, which was disappointing and greatly disappointing about the future outlook,
caused investors to sell the shares of the technology giant,
as the market value of “Amazon” fell to less than a trillion dollars.

Amazon stock recorded a decline of about 12%, in light of the expectations of technology companies
to slow down in profits during the last quarter of this year 2022,
and Amazon stock recorded a decline of 21% at the end of trading last week,
thus the company joins the rest of the technology sector companies that record a decline
and that witnessed major collapses in market value


Collective retreats

While some technology sector companies, whose value exceeded
a trillion dollars during the current year, declined,
and this came at a time when US Treasury bonds were declining,
in addition to high inflation that reached its highest levels in decades,
all of these factors had a direct impact on the shares of technology giants,
and the place The Nasdaq 100 index fell by about 32%,
it included the problem of supply chains as well as closures due to the Corona epidemic in China
and the continuation of the Russian-Ukrainian war
The market value of the electric car giant, which used to exceed one trillion dollars,
has now fallen to 710 billion dollars, while the market value of the “Meta Platforms” company,
which includes “Facebook” also declined, with a decline of 75% from its historical peak,
which amounted to 10.08 trillion dollars in the year 2021,
and thus came out of the list of the 20 largest companies




Negative pressure

The strong impact of the ban due to the Coronavirus in China has caused
the business growth of “Amazon” company,
whose market value has reached a peak of 1.88 trillion dollars, since last year,
but with the slowdown experienced by the turbulent global economy,
their name fell by about 33% during 2022.

In addition to the decline in the ranking of the richest man in the world,
which was owned by the founder of the company, it is currently ranked third.


article name Turkey seeks cooperation with the Kingdom of Saudi Arabia

A Fed official stresses the importance of curbing inflation

A Fed official stresses the importance of curbing inflation despite the risks of recession.

In a statement last Friday,
Richmond Federal Reserve Bank President Thomas Barkin said,
“The central bank is determined to rein in severe inflation,
even if that means risking a recession in the United States.”
He stressed their commitment to return inflation to the target at 2%
and we will try to do everything to achieve this,
and that this can be achieved “without a massive decrease in activity”,
while acknowledging the risks that still exist,
which is the recession that may occur during that.

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Prospective data

Turkey stimulates the economy with a sudden interest rate cut.

Tencent sales declined for the first time as the economy deteriorates in China.










Prospective data

After raising interest rates by 75 basis points in July,
to become the second consecutive hike in two months,
as monetary policy officials in the United States seek to confront inflation
that is approaching historical levels in 40 years,
and they also stressed their need for more interest rate hikes,
but it will be Deciding on the amount of the hike at the next monetary policy meeting
The report of the Ministry of Labor in July showed a recovery in the American economy,
as it managed to add 528,000 jobs, a rate more than expectations,
with a decrease in the unemployment rate to reach 3.5%
at the same level before the epidemic.



When does inflation reach its peak?

A report published on the tenth of August showed an increase
in consumer prices by 8.5% in the 12 months to July,
and thus declined during the year to June of this year from 9.1%,
and thus recorded its highest inflation rate since 1981,
it will work Officials will review the latest reports on jobs
and consumer inflation at the meeting scheduled for next month

A monetary policy official said that he was “supportive of raising interest rates at an early stage,
and added uncertainty regarding the level of interest rates,
which are considered neutral,
which means that they do not have the effect of slowing down
or even stimulating the American economy.”


“Controlling inflation will be necessary to establish
what we have the ability to do in the economy,
and I have convinced myself that not controlling inflation
is incompatible with a thriving economy,” he added.


artical name A Fed official stresses the importance of curbing inflation









Turkey stimulates the economy with a sudden interest rate cut.


On Saturday, the Turkish Central Bank issued a decision to push commercial banks
to reduce interest rates on loans granted to companies,
after the Turkish Central Bank had moved to stimulate the Turkish economy
through a sudden reduction in interest rates,
as officials in Turkey would resort to imposing rules
that would force banks to It approximated the interest rate on the commercial loan
from the benchmark interest rate in Turkey,
in attempts to counteract the slowdown in the economy,
where signs that show that the economy,
which has reached 800 billion in size, recorded worrying results.



Despite the high inflation in Turkey at 80%, which is the highest level in 24 years,
the Turkish Central Bank decided to reduce interest rates at 13%,
and is currently seeking to issue regulations aimed at maintaining
a relatively cheaper cash flow for companies,
while providing job opportunities while preparing When Turkey has elections next year 2023
Banks are seeking to buy more government bonds denominated in lira for adjustment,
and this demand may lead to a rise in the Turkish bond markets.



Regulations set by the Turkish Central

The regulations set by the Central Bank of Turkey
are to strengthen what it calls the transfer mechanism,
or its ability also to the cost ratio of the money that is loaned to customers by banks
The most important part remains the goal of reducing the cost of loans to corporate clients,
and therefore the banks that deal with loans to their clients will have to deposit
more assets in lira in the Central Bank of Turkey.


Thus, banks will have to buy bonds in local currency equivalent to 20%
of the credit with the Monetary Authority.
These regulations will be applied that differentiate the loans
that will be extended to the end of the year.



current situation

The official interest rate in Turkey shows the sharp contrast with the cost of loans
during the past months in the banking sector,
where the interest rate of the Turkish Central Bank is less than half in banks,
and has witnessed great stability at 14% since September 2021 until it was reduced last week.


Interest rates on commercial loans in the Turkish currency rose to 30% in June,
the highest rate in the last four years,
and the process of strengthening the economy by providing credit remained
the policy that the administration of Turkish President “Recep Tayyip Erdogan”
had long preferred after the failed coup attempt in 2016.



Turkish lira

It is clear that the lira currency is under threat due
to the sudden resumption of monetary easing,
and the currency has recorded the worst performance among the currencies
in the world since the beginning of this year 2022,
as it fell by about 1% against the US dollar,
and officials in Turkey, headed by “Erdogan”,
are seeking to reduce costs Borrowing before the next presidential election
But at the same time, the problem of high prices remains
a major threat to the current president, “Erdogan.”


artical name A Fed official stresses the importance of curbing inflation








Tencent sales declined for the first time as the economy deteriorates in China.


Tencent Holdings announced a decline in its revenues for the first time
after the record decline in online advertising sales, which reached 18%,
but it exceeded estimates, and this is evidence of the extent of the impact of the deteriorating
Chinese economic situation on the country’s largest companies,
where the company is considered the highest in terms of value



 And the company has cut thousands of jobs by about 5% of its workforce,
which is the first quarterly drop in employment since 2014,
after decisions to lay off workers in the global technology sector.



Reports stated

that the company’s revenues fell by about 3% to reach 134 billion yuan,
with a decrease in net income of 56 percent in the quarter ending last June.


Tencent is suffering from a downturn in the Chinese economy,
which is the second largest in the world.
This economic decline comes due to real estate stagnation
and closures in connection with the Coronavirus.



The prevailing uncertainty continues to lead to chaos in business,
extending from the advertising sector,
including cloud computing and games,
and the “Ali Baba Holding” group announced
that it recorded the first quarterly decline in revenue this month.



Investors welcomed the efforts of Tencent to reduce costs despite the pressures,
and thus the company was able to cope and withstand better than expectations.


The results indicated that the adjusted net income of 28.1 billion
yuan is about 15% higher than expectations,
and “Tencent” intends to give up its shares in one of its partners, “JD.com”,
and “Tencent” shares rose by about 4% in Hong Kong, but Ali from this rise,
but it is affected by the significant decline this year by about 25%.



In the past, the company relied on expanding its investment network to hundreds of companies
in order to provide opportunities and new markets, but in the past,
the company indicated to change this policy and
will try to reduce the shares in investing in major Internet companies, including JD.


This has a positive effect on satisfying the Beijing administration,
which was seeking to reduce the influence imposed by “Tencent”
and “Alibaba” on the Internet sector in China
by supporting hundreds of startup companies.



artical name A Fed official stresses the importance of curbing inflation


America does not recognize the economic recession.

America does not recognize the economic recession.

Despite shrinking for two consecutive quarters.

The United States of America recorded a contraction during the first and second quarters
of this year at a rate of 1.6% and 0.9%, respectively,
considering that the real indicator of the recession of the economy is to record a GDP for two consecutive quarters.
Logic says that America is currently in a state of economic recession, but the United States completely ignores the recognition
that the American economy is currently in a recession,
and this is very clear by also ignoring the media inside and outside America,
specifically in Europe, thus ignoring the real criterion for measuring the recession of the economies of countries,
which caused everyone to puzzled, and we try to look for logical reasons.

The main reasons for not recognizing the recession of the economy are political reasons in light of the decline in popularity
and support of US President Joe Biden,
and perhaps also because the US economy in certain sectors is growing strongly despite the results of declining GDP.
It is also mentioned that the reason is linked in the official announcement and entrusted in this matter
is the committees of the National Bureau of Economic Research only.




The pressure of the state of the world economy

The suffering of the Turkish lira continues amid rising prices and the loan crisis

Tech giants in the face of global economic recession and resort to accelerating employment.










The pressure of the state of the world economy


Since the beginning of the corona pandemic,
the global economy has been in a state of unprecedented turmoil,
which was reflected in the US economy, which inflation rates reached their record levels 41 years ago,
in addition to the wars and political problems taking place globally,
especially the Russian war on Ukraine,
which caused energy crises and some food commodities.
On the contrary, there are signs of a stable economy,
including the stable job market and also the current good consumer spending index,
which is the basis for the movement of the American economy.

US President Joe Biden, US Treasury Secretary Janet Yellen,
was promoting the idea of avoiding economic recession in the United States,
and that current inflation is temporary,
and at the last meeting of the Federal Reserve last week,
the Central Bank raised interest rates by 75 basis points,
and Jerome Powell’s response was always regarding the economic situation
that America is not in recession.


National Bureau of Economic Research “NBER”


A non-profit or party organization whose main goal is to evaluate the economy to see if it is in recession or not.
The same office issued a report in June 2020 on the end of the growth
period in the US economy after the Corona pandemic,
and the committee throughout its history has not retreated in any decision at all,
and the committee also holds its meetings in secret.
The committee works to analyze economic data
and reports completely away from political affairs,
and issues its report after it sees a noticeable decline in the economy
its activity at the level of different sectors for a period of months,
and its adoption on three basic criteria,
namely the speed of contraction,
the number of declining sectors and the duration of time for the contraction of the economy.


artical name America does not recognize the economic recession.









The suffering of the Turkish lira continues amid rising prices and the loan crisis


The Turkish lira has been under strong pressure since successive interest rate cuts in September 2021,
coinciding with the rise in inflation rates to record levels,
the continuation of the corporate loan crisis,
and the increase in gas prices in national gas companies again.

Controversy between Turkey’s central bank and companies over new loan rules

In Turkey, a set of new regulations were issued with regard to the regulatory aspect of granting loans,
where the Turkish authorities,
mainly Central Bank Regulation and Supervision Agency,
decided to limit the granting of corporate loans.
This decision comes within the comprehensive economic reform plan sought by the Turkish President.

On the other hand, companies see that these regulations put
a lot of pressure on companies seeking financing from banks,
although Turkey will proceed with its policies previously set.


Energy companies raise gas prices


Turkish officials seek to implement Turkish President Recep Tayyip Erdogan’s model,
which includes encouraging exports and tourism,
working to reduce interest rates and completely ignoring inflation rates
that he sees as due to the external economic situation.

But the increase in energy prices also affected,
where the price of natural gas increased by 10% to become currently 13.75 Turkish liras per cubic meter,
and this is not the first time for Botash to raise gas prices,
where prices were raised 30% in natural gas for housing and 40% for companies at the beginning of July.
These increases in energy prices came due to lack of supplies as well as
the Russian war on Ukraine and the rise in standard exchange rates,
thus reflected in the rise of fuel in the country and are a candidate for further increases in winter.

The Governor of the Central Bank of Turkey, Davutoglu,
said that focusing on the effective results of the economy through credit policies
that support the realization of a surplus in the current account.
He added that the regulations of the Central Bank provide exporters with good conditions in order to increase production.
He also sees that the complaint of companies regarding the regulations on financing companies is unjustified
and that these companies have an obsession with foreign exchange and seek to obtain it strongly.


The lira is columbling


The market witnessed today a decline in the currency of the Turkish lira against the US dollar,
where the price of the US dollar against the Turkish lira reached 17.94,
and is expected to reach 17.96 during today’s sessions,
and this comes in conjunction with the declines of the US dollar
after the Federal decision to raise interest rates last week.


artical name America does not recognize the economic recession.








Tech giants in the face of global economic recession and resort to accelerating employment.


At a time of heightened fear of the global economic recession
and the war between Russia and Ukraine and the continuation of the Corona epidemic,
many of the world’s largest technology companies are starting to deal with their staff needs.
Some of these companies find the solution to stop recruitment processes and others resort to layoffs,
on top of these giants Amazon and Alphabet, the parent company of Google.


Amazon is trying to lay off workers


The company adopted a policy of reducing the number of its employees,
as the rate of decline in the company’s employees reached 100,000 compared to the previous quarter,
and at the same time Amazon is working to reduce the employment rate until it adds jobs slower
than the rate in 2019, and here the company begins to austerity to face the economic crisis.

The company had employed a lot of its labor at the time of the outbreak
and the closure in force at the time,
but with the reopening of the company found itself facing a congestion of employees,
which affected the productivity rate,
as the number of employees currently reached 1.52 million full-time and part-time workers.


Alphabet is slowing down recruitmentGoogle


It is considered the parent company of the giant “Google”,
and its policy in dealing with the crisis was to keep the labor it has with slow recruitment,
as the second quarter of the year witnessed the employment of 10,000 people,
which was stated by the CEO of ,
adding that the company is not far from the stormy economic situation and we must be fully prepared,
and the company’s team is currently working on setting priorities in employment for the rest of the year,
and the number of employees of the company at the end of March reached 164,000 employees.


Apple is slowing down hiring and reducing spending


The technology company “Apple” also took measures to reduce recruitment
and spending operations in some departments,
in anticipation of any possible recession next year,
and the number of Apple employees in September last year reached 154,000 employees.


Facebook cuts hiring of engineers


Also, Meta Platformer, the parent company of Facebook,
resorted to reducing the recruitment of engineers by 30%, because Mark,
the CEO of the company, expects the worst periods of contraction in modern history, as he described it,
and the number of employees of Meta Company reached 77,800 employees by the end of March 2022.


artical name America does not recognize the economic recession.