Turkey Letter 19 August 2019

Foreign Policy:

  • Turkey says airstrikes target Turkish army convoy in Syria
  • Turkey says Syria safe zone centre to start work next week
  • Turkish Bank Ziraat Closes Door on Venezuela Amid U.S. Sanctions
  • Turkish drones start operating in Northern Syria: Ministry

Economy & Energy:

  • Turkish central bank adjusts required reserve ratios, remuneration
  • Turkish Factory Output Slump Shows Growth Woes Are Far From Over
  • Turkey Plugs Bleeding Budget With Large Central Bank Transfer
  • Turkey’s lira firms, outperforming some emerging markets

Domestic Politics:

  • Turkey suspends three mayors, alleging links to Kurdish militants
  • Turkish Authorities Seize 330 Migrants Attempting to Cross to Greek Island

Foreign Policy

Turkey says airstrikes target Turkish army convoy in Syria

Airstrikes targeted a Turkish army convoy inside a rebel-held part of Syria on Monday, the Turkish Defense Ministry said, killing 3 civilians and wounding 12 others. The Syrian government, however, said the convoy entered the country carrying ammunition to help rebels who have lost ground this month amid a government offensive to retake the country’s last rebel stronghold.

AP News, Turkey says airstrikes target Turkish army convoy in Syria, 19 August 2019


Turkey says Syria safe zone centre to start work next week

A joint Turkish-U.S. operation centre to establish and manage a safe zone in northeast Syria will be fully operational next week, Turkish Defence Minister Hulusi Akar said on Friday.

Reuters, Turkey says Syria safe zone centre to start work next week, 16 August 2019


Turkish Bank Ziraat Closes Door on Venezuela Amid U.S. Sanctions

Ziraat Bank, Turkey’s largest bank by assets, has stopped offering services to Venezuela’s Central Bank in wake of tougher U.S. sanctions that raise the stakes for companies that do business with the Caribbean nation.

Bloomberg, Turkish Bank Ziraat Closes Door on Venezuela Amid U.S. Sanctions, 15 August 2019


Turkish drones start operating in Northern Syria: Ministry

Turkish drones have started operating in northern Syria where Washington and Ankara have agreed to create a safe zone, Turkey’s Defence Ministry said on Wednesday.

Reuters, Turkish drones start operating in Northern Syria: Ministry, 14 August 2019


Economy & Energy

Turkish central bank adjusts required reserve ratios, remuneration

Turkey’s Central Bank said on Monday that it had changed the ratio of and remuneration applied to required reserves, with the intention of using reserve requirements more flexibly and effectively.

Reuters, Turkish central bank adjusts required reserve ratios, remuneration, 19 August 2019


Turkish Factory Output Slump Shows Growth Woes Are Far From Over

Turkish industrial output slumped for a 10th month running as the Middle East’s largest economy struggled to gain momentum after its first recession in a decade.

Bloomberg, Turkish Factory Output Slump Shows Growth Woes Are Far From Over, 16 August 2019


Turkey Plugs Bleeding Budget With Large Central Bank Transfer

The Turkish government plugged its deteriorating finances in July with an outsized cash infusion from the central bank. The monetary authority transferred around 22 billion liras ($3.94 billion) to the Treasury last month, the biggest deposit since an annual dividend payment in January, according to data on its website.

Bloomberg, Turkey Plugs Bleeding Budget With Large Central Bank Transfer, 15 August 2019


Turkey’s lira firms, outperforming some emerging markets

Turkey’s lira firmed on Thursday, outperforming some other emerging market currencies, while the main stock index declined more than 2% after a three-day market holiday.

Reuters, Turkey’s lira firms, outperforming some emerging markets, 15 August 2019


Domestic Politics

Turkey suspends three mayors, alleging links to Kurdish militants

Turkey’s government said on Monday it had indicted three popular sitting mayors from Kurdish-majority provinces on terrorism charges and replaced them with state officials.

Washington Post, Turkey suspends three mayors, alleging links to Kurdish militants, 19 August 2019


Turkish Authorities Seize 330 Migrants Attempting to Cross to Greek Island

Turkish authorities have seized a total of 330 migrants attempting to cross to the Greek island of Lesbos, officials said on Sunday.

New York Times, Turkish Authorities Seize 330 Migrants Attempting to Cross to Greek Island, 18 August 2019