Turkey’s central bank raises interest rate to 17%

Turkey’s central bank raises interest rate to 17%
The hike was enacted ‘to implement a strong monetary tightening, in order to eliminate risks to the inflation outlook, contain inflation expectations and restore the disinflation process as soon as possible.’ (AFP file photo)
Short Url
Updated 24 December 2020

Turkey’s central bank raises interest rate to 17%

Turkey’s central bank raises interest rate to 17%
  • The decision follows the November hike of 475 basis points

ISTANBUL: Turkey’s central bank raised the benchmark interest rate on Thursday for a second time in a row under its new chief.
The bank announced after its Monetary Policy Committee meeting that it was raising the one-week repo rate — the rate by which it lends to commercial banks — by 200 basis points to 17 percent. The decision follows the November hike of 475 basis points.
A bank statement said the hike was enacted “to implement a strong monetary tightening, in order to eliminate risks to the inflation outlook, contain inflation expectations and restore the disinflation process as soon as possible.”
Turkish President Recep Tayyip Erdogan ousted the previous central bank chief in November, after the lira dipped to record lows and appointed Naci Agbal, a former finance minister, to the post.
The former chief, Murat Uysal, had reduced interest rates from 2018 highs, in line with Erdogan’s aversion to high rates.
Markets have responded positively to Agbal and his promise for more orthodox, tighter policy. The lira has strengthened against the dollar since then, following a months-long plunge due to concerns over the management of the economy and central bank reserves, the COVID-19 pandemic and diplomatic tensions.
Agbal’s appointment was followed by the surprise resignation of Erdogan’s son-in-law and finance minister Berat Albayrak.
Annual inflation stands above 14 percent and unemployment at around 13 percent, although opposition parties and economists caution that the official figures released do not represent the true picture.


ACWA Power among bidders of 1,200 MW Saudi renewable energy projects 

ACWA Power among bidders of 1,200 MW Saudi renewable energy projects 
Updated 19 October 2021

ACWA Power among bidders of 1,200 MW Saudi renewable energy projects 

ACWA Power among bidders of 1,200 MW Saudi renewable energy projects 

RIYADH: The Saudi Ministry of Energy announced the list of candidates for bids received from developers, participating in the third phase of renewable energy projects in the Kingdom, consisting of four independent generation projects (IPP) for solar photovoltaic energy with a total capacity of 1200 MW.

French Total Solar and ACWA Power are both candidates for the Wadi Al-Dawasir project with a capacity of 120 MW, while ACWA Power and AlFanar Energy Company are candidates for the Laila project with a capacity of 80 MW, under Category A.


What is the future of food? Dubai forum talks answers

What is the future of food? Dubai forum talks answers
Updated 19 October 2021

What is the future of food? Dubai forum talks answers

What is the future of food? Dubai forum talks answers
  • The UAE’s Minister of Climate Change and Environment Mariam bint Al-Mheiri is opening the first day of the 2-day forum

DUBAI: High-profile personalities in the food and beverage sector gathered at the Dubai Exhibition Center on Tuesday to talk about the future of food. 

The UAE’s Minister of Climate Change and Environment Mariam bint Al-Mheiri is opening the first day of the 2-day forum addressing government efforts in supporting manufacturers. 

Other top executives — from organizations such as Pepsico, Kellogs, and Agthia — will also take the stage to answer questions in food sustainability, supply chain challenges, and other crucial topics in the region’s F&B scene. 


Saudi holdings of US treasury bills fell to lowest in 14 months

Saudi holdings of US treasury bills fell to lowest in 14 months
Updated 19 October 2021

Saudi holdings of US treasury bills fell to lowest in 14 months

Saudi holdings of US treasury bills fell to lowest in 14 months

RIYADH: Saudi Arabia's holding of US Treasury securities decreased by the end of August to $124.1 billion, the lowest since May 2020, according to new data from the US government.

The Saudi holdings in August were down by 3.1 percent or $4 billion compared to the previous month.

The holdings declined by 4.5 percent equivalent to $5.9 billion on an annual basis, compared to August 2020, the data showed.


Gold edges lower as US Treasury yields rise

Gold edges lower as US Treasury yields rise
Updated 18 October 2021

Gold edges lower as US Treasury yields rise

Gold edges lower as US Treasury yields rise

BENGALURU: Gold edged lower on Monday as a rise in US Treasury yields dented its appeal, although a risk-off sentiment in wider financial markets limited losses for the metal.

Spot gold was down 0.1 percent at $1,765.14 per ounce by 1:35 p.m. EDT (1735 GMT), while US gold futures settled down 0.2 percent at $1,765.70.

“If yields keep rising, the headwinds will remain significant for gold,” OANDA analyst Craig Erlam said.

“Unless markets start to price in bad news for the economy and stock markets, which may be a rational next step if policymakers insist on tightening even as the recovery remains sluggish and downside risks significant.”

Sentiment in wider financial markets remained weak as economic growth in China slowed, while a relentless surge in oil prices fueled concerns about elevated inflation.

US benchmark 10-year Treasury yields climbed as investors ramped up rate hike bets, while the dollar index held steady.

While gold is seen as an inflation hedge, it also contends with the greenback for safe-haven status. Reduced central bank stimulus and the prospect of interest rate hikes push government bond yields up, weighing on non-yielding bullion.

Other precious metals also dipped, with silver down 0.3 percent at $23.21 per ounce and platinum slipping 1.8 percent to $1,035.29. Palladium shed 3.3 percent to $2,005.07, its lowest in over a week.


New York makes registration mandatory for crypto lending platforms

New York makes registration mandatory for crypto lending platforms
Updated 19 October 2021

New York makes registration mandatory for crypto lending platforms

New York makes registration mandatory for crypto lending platforms
  • State’s attorney general directs unregistered outlets to cease operations

RIYADH: New York has made it mandatory on cyrptocurrency lending platforms to register with the Office of the Attorney General if they wish to operate in the state or offer their products to New Yorkers.

New York Attorney General Letitia James on Monday said these steps are aimed to protect New York investors and markets from exploitation by high-risk virtual currency schemes.

The official also ordered the closure of two cryptocurrency lending platforms in New York and three other platforms were directed to provide information about their business.

“Cryptocurrency platforms must follow the law, just like everyone else,” James said.

The move comes weeks after the attorney general won a court order forcing the closure of cryptocurrency exchange Coinseed.

“My office is responsible for ensuring industry players do not take advantage of unsuspecting investors. We’ve already taken action against a number of crypto platforms and coins that engaged in fraud or that illegally operated in New York,” he said.