Erdogan appoints himself chairman of Turkey’s sovereign wealth fund

13 Septembre, 2018, 17:52 | Auteur: Auguste Feret

Turkey's central bank today surprised markets with a bigger than expected rate hike to battle soaring inflation and boost the lira, prompting the embattled currency to surge in value.

"Great decision - made all the more hard by the huge pressure on the central bank from Erdogan", said Bluebay Asset Management LLC strategist Tim Ash.

Central bank policymakers meet later on Thursday and are expected to raise interest rates - which are now less than inflation - to support the lira. It has been staffed by technocrats close to Mr Erdogan but there have been internal rifts, with some arguing that its wealth should be used to try to steady the lira, which has tumbled against major currencies this year.

President Recep Tayyip Erdogan has appointed himself chairman of Turkey's multi-billion-dollar sovereign wealth fund, according to a decision published Wednesday in the Official Gazette.

The lira reacted strongly to the decision, rising by five per cent in value to 6.0 lira to the United States dollar.

The Monetary Policy Committee led by Governor Murat Cetinkaya on Thursday increased the one-week repo rate by 625 basis points to 24 per cent, more than the median estimate in a Bloomberg survey that called for a hike of 325 basis points.

USA firms in China feeling 'clear and far reaching' trade war pinch
Treasury Secretary Mnuchin led the USA delegation of top trade officials to Beijing where they met with their counterparts. China has threatened retaliation, which could include action against USA companies operating there.

Prince William Launches Website Focusing On Mental Health At Work
Mental Health at Work is one of the initiatives being driven by William as part of his ongoing work with Heads Together .

La Russie a retrouvé les deux hommes accusés, dit Poutine — Skripal
Le couple avait manipulé un flacon ressemblant à une bouteille de parfum qui contenait l'agent innervant. Ils font l'objet d'un mandat d'arrêt . " Ce sont des civils bien sûr ", a-t-il ajouté.

It said: "Accordingly, the committee has chose to implement a strong monetary tightening to support price stability".

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

The interest rate decision will be announced at 1100 GMT.

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. "If you say "inflation is the cause, the rate is the result", you do not know this business, friend", he added.

His comments come before the Turkish central bank (CBRT) monetary policy decision due on the cards at 1100 GMT.

Turkey's shopping mall industry has more than $15 billion of debt which firms could struggle to repay if they are unable to generate foreign currency revenues, Belgu said, adding that such decisions may spook foreign investors who account for about $17 billion of a total $58 billion invested in shopping malls.

Conseillé:



Populaire

Debenhams and House of Fraser merger mooted, director says
Newcastle United owner and Sports Direct boss Mike Ashley has been dealt a blow by a High Court judge. But he added the company still had its "hands full" with integrating House of Fraser.

La chanteur Rachid Taha s'est éteint à 59 ans
Fidèle à la musique rock et punk qu'il affectionne, Rachid Taha y a fait infuser dans ses chansons des sonorités orientales. L'interprète de Ya Rayah avait notamment participé à la tournée 1,2,3 soleil aux côtés de Faudel et Khaled.

Pep Guardiola reveals plans for Barcelona return at end of career
The Manchester City boss took charge of the youth side in 2007 before being handed the reins at the Nou Camp. Manchester City host Fulham in the Premier League on Saturday.

Toby Alderweireld reveals the truth behind Manchester United's summer pursuit
The Belgian global has iterated that he never wanted to leave Tottenham, and that the rumours suggesting the same were untrue. Opinion from Spurs fans is split, with some happy at his comments and others reserving judgement until he signs a new deal.

Apple faces Trump's ire after company says tariffs would hurt products
Trump proposed what he referred to as "an effortless solution": "Make your merchandise within the united states instead of China". Chinese regulators have so far targeted farm goods and other exports from states that supported Trump in the 2016 election.

Coli led to deaths of British couple in hotel
But daughter Kelly Ormerod, 40, claimed her parents, from Burnley, were "fit and healthy" and has demanded a full investigation. Thomas Cook , meanwhile, said it needed time for its own experts to review the prosecutor's statement.

Sadio Mané says Roberto Firmino is like an animal on the pitch
The Brazil global netted 27 times in all competitions last season, with 15 of them coming in the Premier League. And the guys behind us do some extraordinary work. 'We try to benefit from that and help the team go forward'.

Le LOU officialise l'intégration de Frédéric Michalak dans son staff
Frédéric Michalak tiendra ainsi un rôle de conseiller auprès du président Yann Roubert mais également auprès du manager sportif Pierre Mignoni.

WHAT'S HAPPENING: Hurricane Florence looms over East Coast
The storm was about 235 miles east-southeast of Wilmington, North Carolina and was moving at about 17 mph on Thursday morning. Forecasters anxious the storm's damage will be all the worse if it lingers on the coast.

9/11 anniversary: Russian bombers intercepted near Alaska by USA fighter jets
NORAD said the Russian bombers and fighter jets were intercepted "west of mainland Alaska" by the American fighter jets at 10 p.m. It's the second time this month that Russian aircraft have been intercepted in Air Defense Identification Zone, Hennessy said.