Turkish Central Bank sold more than 50 billion US dollars to the market to keep the exchange rate stable. It also raised interest rates. Türkiye’s economy experienced turbulence in the foreign exchange market. The Central Bank took precautions and calmed the situation, but its measures will have medium-term effects. The turning point occurred on March 19 when the Metropolitan Mayor ...
By Michael Roberts * On Friday, Californian bank Silicon Valley Bank (SVB) became the largest bank to fail since the 2008 financial crisis. In a sudden collapse that shocked financial markets, it left billions of dollars belonging to companies and investors stranded. SVB took deposits from and made loans to companies in the heartland of America’s tech sector. The US Federal Deposit ...
By Recep Erçin* The Turkish economy has suffered three major currency crises since a difficult turn was taken, the country abandoning its growth model dependent on foreign capital flow. The first crisis took place in August 2018, and was triggered by the Pastor Brunson crisis. The second shock began in the autumn of 2020 with the dismissal of the Governor ...