Aurelia Butler

Turkey’s banking regulator has filed a criminal complaint against more than 20 people, including former central bank governors, journalists and an economist, over alleged attempts to manipulate the country’s exchange rate in a move that could chill criticism of the government’s unorthodox economic policies.The Banking Regulation and Supervision Agency said on Twitter on Monday it was seeking legal action against 26 people and Twitter accounts over “their posts on social media and [through] media outlets”, amid a currency crisis that has slashed 35 per cent from the value of the lira this year.Among those accused are Durmus Yilmaz, who led the central bank between 2006 and 2011 and is now an opposition lawmaker. Rusdu Saracoglu, another former central bank governor, is also on the list posted by the banking watchdog.The regulator said its complaint was based on an article in the banking law which prohibits making statements in the media that could discredit or damage a bank’s reputation.The Turkish government frequently uses the courts to silence its critics and has launched criminal suits against journalists and social media users for their statements during previous bouts of volatility in financial markets.President Recep Tayyip Erdogan has argued that a weaker lira will boost exports and economic growth and has ordered the central bank to cut interest rates despite official inflation rates above 20 per cent. He argues that high interest rates fuels inflation, contrary to mainstream economic theory. Erdogan was forced to introduce emergency measures on December 20 as the lira tumbled to a record low of 18.4 to the dollar, down 60 per cent over the year. The rescue plan, which includes state guarantees to compensate savers against the currency’s devaluation, has helped the lira recover to 11.5 against the dollar.

A sharp decline in the central bank’s foreign currency reserves at the start of last week suggested that state institutions had bought billions of lira to shore up the currency. Turkey’s net foreign assets fell by $5.9bn in the first two days of last week, according to Financial Times calculations based on central bank data.The finance minister, Nureddin Nebati, said in a television interview on Monday that there had been no such interventions on December 20 and that the lira had recovered most of its losses after Turks “raced to sell their dollars” following Erdogan’s promise to protect lira deposits.Guldem Atabay, an economist who writes for the website Para Analiz and who was named by the central bank, said she had not yet been formally notified of the complaint but suspected the move related to concerns she had expressed over potential risks in the new deposit instrument.“The complaint serves as a threat to the other economists who are also drawing attention to the government’s policy mistakes,” she said. “I will continue to try to inform people about what I see, which is based on the math and science.”  More

Known as the National Strategic Hub, the infrastructure is part of the government’s strategy to accelerate digital transformation and guarantee national data security. In its national Recovery Plan sent to Brussels in April, Rome earmarked 900 million euros ($1.04 billion) for the project. The ministry said it had received three proposals for the national cloud and identified that prepared by the TIM-led consortium – which includes state lender CDP, defence group Leonardo and government IT agency Sogei – as the one which “fully and satisfactorily reflects the requirements” set by Rome in September. “It is expected that the call for tenders could be published in the first weeks of 2022, in order to allow the start of the works within the second half of the year,” the ministry added.While others can submit proposals in line with the parameters set by the TIM-consortium, that project is seen as a clear favourite to win the tender. That consortium also has a right to match any improved rival bid that may be presented.The other two proposals came from a partnership between Italian IT group AlmavivA and cloud provider Aruba and a consortium that includes Italian software developer Engineering and telecoms group Fastweb, a unit of Swisscom. More

By Umit OzdalDIYARBAKIR, Turkey (Reuters) -Hazal Tunc and her friends founded Turkey’s first women-only street market eight years ago to help victims of domestic violence and divorcees, and it has provided them with jobs and security – until now.Like organisations and companies across Turkey, the market has seen business shrivel dramatically as a result of a currency crisis in which the lira has lost as much as 48% of its value in the past two months alone.The market in the mainly Kurdish southeastern city of Diyarbakir enjoyed buoyant trade in its early years but declined in the last two, particularly in the last six months as the lira crash has sent prices soaring and ravaged household budgets.”Sales have come to a complete standstill. In the past, customers used to buy two kilos of carrots. Now they come and buy three carrots,” said Tunc, 46, a mother of three who helped found the market for fruits, vegetables and handicrafts.The lira crisis was prompted by President Tayyip Erdogan’s push for lower interest rates despite a sharp increase in inflation and warnings from economists.’EVERYONE HAS GIVEN UP’In happier days, up to 256 women made a living selling their wares at the street market, but that has dwindled to 69.”People’s purchasing power is almost completely gone – and so is our selling power,” Tunc said. “Everyone has given up.”The lira staged a sharp rebound last week after the government unveiled a deposit-protection plan, and the state backed a series of market interventions selling billions of dollars.Tunc was unimpressed.”If they (the government) could intervene, why did they wait three months, four months?” she said. “Many people committed suicide, they went into debt. If (the government) could solve this, why didn’t they do it?”One week ago, before the government moves, one dollar was worth 18 lira. On Monday it was worth 11.4 lira, though still down 35% from a year ago.Economists say the lira remains vulnerable, and with it people’s living standards. Annual inflation is expected to jump toward 30% next year from 21% last month, as import prices soar and retailers cover rising goods, energy and labour costs.Vegetable vendor Hanim Dogan said people now struggled even to buy basic food items.”In the evening bread costs 4 lira, and the next morning it is 7 lira. People are stumped and don’t know what to do. A person who bought 5 kilos of oranges before, now buys 1 or 2 kilos,” she said.”The financial situation has become very difficult.” More