Turkish Lira Flat after Touching Record Low, Cenbank Reserves Up

Turkish lira banknotes are seen in this illustration taken in Istanbul, Türkiye November 23, 2021. (Reuters)
Turkish lira banknotes are seen in this illustration taken in Istanbul, Türkiye November 23, 2021. (Reuters)
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Turkish Lira Flat after Touching Record Low, Cenbank Reserves Up

Turkish lira banknotes are seen in this illustration taken in Istanbul, Türkiye November 23, 2021. (Reuters)
Turkish lira banknotes are seen in this illustration taken in Istanbul, Türkiye November 23, 2021. (Reuters)

Türkiye's lira was mostly flat on Tuesday, after touching a new record low overnight, while bankers said the central bank's net reserves had marked their largest rise on record last week as it stopped using the reserves to support the lira.

The lira touched a record low of 26.10 against the dollar early on Tuesday during low liquidity hours and later firmed to as much as 25.55. But it later gave up those gains to stand at 26.03 at 0857 GMT, compared with a close of 26.05 on Monday.

The currency has weakened some 28% this year, largely after the re-election in late May of President Recep Tayyip Erdogan, who has since moved to backtrack on his years of unorthodox economic policy.

As part of the policy pivot, the central bank stopped using its reserves to counter forex demand and support the lira. Its net reserves had touched an all-time low of negative $5.70 billion last month after a years-long decline.

Four bankers calculated that the central bank's net forex reserves had risen by about $8.5 billion last week to around $9 billion, which would mark the largest weekly rise on record.

The largest weekly rise in net international reserves was in February 2002 with $8.2 billion.

The bank's total reserves were also expected to have risen by about $4.5 billion to stand at about $107.5 billion as of June 23.

The central bank raised its policy rate by 650 basis points last week, in the strongest signal of a return to orthodoxy, after years of loose policy despite soaring inflation under Erdogan.

The increase was lower than expected, leading some analysts to suspect that new Central Bank Governor Hafize Gaye Erkan, a former Wall Street banker, may have limited room to maneuver under Erdogan.

The bank also rolled back some macroprudential measures it has implemented in recent years as part of its "liraization" targets.

Inflation surged after a late-2021 currency crisis that was sparked by rate cuts that Erdogan had called for, based on his view that interest rates cause inflation. Annual inflation touched a 24-year peak of 85.51% in October before easing.

Monthly inflation was seen at 4.84% in June, even as the annual reading was expected to decline slightly to 39.47%, according to a Reuters poll.



Saudi Arabia Assumes WTO General Council Presidency for 2025–2026

The General Council of the World Trade Organization (WTO) unanimously appointed Permanent Representative of Saudi Arabia to the WTO Saqer bin Abdullah Al-Moqbel as its president for the 2025–2026 term. (SPA)
The General Council of the World Trade Organization (WTO) unanimously appointed Permanent Representative of Saudi Arabia to the WTO Saqer bin Abdullah Al-Moqbel as its president for the 2025–2026 term. (SPA)
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Saudi Arabia Assumes WTO General Council Presidency for 2025–2026

The General Council of the World Trade Organization (WTO) unanimously appointed Permanent Representative of Saudi Arabia to the WTO Saqer bin Abdullah Al-Moqbel as its president for the 2025–2026 term. (SPA)
The General Council of the World Trade Organization (WTO) unanimously appointed Permanent Representative of Saudi Arabia to the WTO Saqer bin Abdullah Al-Moqbel as its president for the 2025–2026 term. (SPA)

The General Council of the World Trade Organization (WTO) has unanimously appointed Permanent Representative of Saudi Arabia to the WTO Saqer bin Abdullah Al-Moqbel as its president for the 2025–2026 term. In a historic milestone, Al-Moqbel becomes the first Arab and Middle Eastern delegate to assume this position, reported the Saudi Press Agency on Wednesday.

The WTO General Council, which convenes throughout the year, oversees the organization’s operations between ministerial conferences, held biennially. As the highest decision-making body at the level of heads of missions, the council plays a crucial role in shaping global trade policies.

During Saudi Arabia's presidency, the General Council is set to address several key issues, including preparations for the 14th Ministerial Conference, scheduled to be held in Cameroon in March 2026.

The agenda will also focus on essential WTO reforms, particularly the dispute settlement mechanism; advancing negotiations on the second phase of the Fisheries Subsidy Agreement; and addressing agriculture, food security, and development concerns.

Other priorities include integrating multilateral agreements, such as the Investment Facilitation for Development Agreement and the E-Commerce Agreement, into the WTO framework.

Commenting on the appointment, Al-Moqbel emphasized that Saudi Arabia’s leadership in the WTO General Council reflects its growing role in the international economic landscape, leveraging its global economic influence to strengthen multilateral trade cooperation.