Turkish Central Bank

The Turkish Lira has shown significant strength against the U.S. dollar over the last two weeks, as traders have shrugged off the effects of the U.S. Federal Reserve (Fed) rate hike and the Turkish Central Bank's decision to hold rates steady.

Turkey's Central Bank left its main one-week repo interest rate unchanged at 7.5 percent on Dec. 22 in a surprise move, underlying the "volatility in energy and unprocessed food prices."

There is no reason to halt the planned Akkuyu nuclear power plant with Russia, Turkish Prime Minister Ahmet Davuto?lu said on Dec. 14, after Turkish officials said last week that Russia had stopped construction on the plant.

Turkey ran a current account deficit of $133 million in October 2015, down from $2.3 billion in the same month of the previous year, according to a report the Turkish Central Bank released on Dec. 10.

"The current account deficit was at $133 million, indicating a narrowing of $2.176 billion from October of the previous year, the report said.

The Turkish Central Bank has forecast the country's inflation to stand at 6.5 percent at the end of 2016, according to the bank's governor, Erdem Ba?ç?. 

Addressing a press conference for the presentation of the bank's 2016 monetary and exchange rate policy in Ankara, Ba?ç? said the bank would maintain its tight monetary policy, while ensuring foreign exchange liquidity.

Turkey's annual inflation rate increased above estimates to 8.1 percent in November from 7.58 percent in October due to a sharp hike in footwear and clothing prices, according to data revealed by the Turkish Statistics Agency (TÜ?K) on Dec. 3. 

The highest monthly increase was 5.37 percent in clothing and footwear, according to the TÜ?K data. 

Turkey's annual inflation rate increased above estimates to 8.1 percent in November from 7.58 percent in October due to a sharp hike in footwear and clothing prices, according to data revealed by the Turkish Statistics Agency (TÜ?K) on Dec. 3. 

The highest monthly increase was 5.37 percent in clothing and footwear, according to the TÜ?K data. 

New data on industry production required a downward revision of third quarter growth estimates. Economists started to revise downward even the recently revised 3 percent growth figure.   

Global Finance magazine has lowered the rank of Turkish Central Bank Governor Erdem Ba?ç? from B+ to C, ranking him as one of the worst performers this year. 

Ba?ç? was not graded in his first year in the job in 2011, but took a B+ in 2012, B in 2013, and B- in 2014. 

Some 45 percent of Turkish deposits has now been converted into foreign currencies. The concern is for this to rise in a ?dollarization panic.? When risks increase,the foreign currency trend accelerates.From the businessperson to the politician, from the debtor to the creditor, everybody?s eyes are on the dollar?