Turkey Approves Development Plans for Istanbul Canal

A view of Istanbul with the Bosphorus Strait and Bosphorus Bridge. (AP file photo)
A view of Istanbul with the Bosphorus Strait and Bosphorus Bridge. (AP file photo)
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Turkey Approves Development Plans for Istanbul Canal

A view of Istanbul with the Bosphorus Strait and Bosphorus Bridge. (AP file photo)
A view of Istanbul with the Bosphorus Strait and Bosphorus Bridge. (AP file photo)

Turkey has approved development plans for a huge canal on the edge of Istanbul, Environment Minister Murat Kurum said on Saturday, advancing a project which has attracted criticism over its cost and environmental impact.

The step came a year after Turkey held its first tender for the reconstruction of two historic bridges in its largest city where the 45km (28 miles) Kanal Istanbul, championed by President Recep Tayyip Erdogan, is set to be dug.

“We have approved the Kanal Istanbul Project development plans and put them out for public consultation. We will rapidly take steps to enrich our country and sacred city with Kanal Istanbul,” Kurum wrote on Twitter.

The canal will connect the Black Sea north of Istanbul to the Marmara Sea to the south and is estimated to cost 75 billion lira ($9.2 billion).

The government says it will ease shipping traffic on the Bosphorus Strait, one of the world’s busiest maritime passages, and prevent accidents similar to that this week on the Suez Canal, where work is continuing to refloat a giant container ship blocking the channel.

But like other major infrastructure projects undertaken during Erdogan’s 18-year rule, the canal has drawn criticism from those who say it will wreak environmental havoc and pollute fresh water resources around the city of 15 million people.

Istanbul Mayor Ekrem Imamoglu, from the main opposition party, is among the staunchest critics of the project. He has said spending resources on the canal while Turkey combats the coronavirus outbreak is “mind boggling.”



Dollar and Other Safe Havens Rise as Israel Strikes Iran

US dollar banknotes are seen in this photo illustration taken February 12, 2018. REUTERS/Jose Luis Gonzalez/Illustration/File Photo
US dollar banknotes are seen in this photo illustration taken February 12, 2018. REUTERS/Jose Luis Gonzalez/Illustration/File Photo
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Dollar and Other Safe Havens Rise as Israel Strikes Iran

US dollar banknotes are seen in this photo illustration taken February 12, 2018. REUTERS/Jose Luis Gonzalez/Illustration/File Photo
US dollar banknotes are seen in this photo illustration taken February 12, 2018. REUTERS/Jose Luis Gonzalez/Illustration/File Photo

The US dollar rallied alongside the safe-haven Japanese yen and Swiss franc, with currency markets abruptly reversing direction on news Israel had launched strikes on Iran.

Israel has begun carrying out strikes on Iran, two US officials told Reuters, adding that there was no US assistance or involvement in the operation. Another report suggested that explosions were heard northeast of Iran's capital Tehran.

An index that measures the dollar against six other currencies gained 0.4%, and was last at 98.07, in early Asia trading.

Against the yen, the dollar slipped 0.35% to 143 per dollar , while the Swiss franc tumbled 0.39% to 0.807 per dollar.

Risk-sensitive Asian currencies such as the Aussie dollar and the New Zealand dollar weakened 0.9% each, Reuters reported.

Earlier in the week, the dollar index hit multi-year lows as investors were not impressed by a US-China trade truce, while cooler-than-expected inflation data fuelled expectations of more aggressive interest rate cuts by the Federal Reserve.

The dollar is on track for weekly declines against the yen, the Swiss franc and the euro.

Crude prices jumped more than $4 on the news as investors priced in potential supply disruptions from the oil-rich region, while gold prices climbed 0.8% to their strongest since early May.