President Recep Tayyip Erdogan subtly acknowledged the depth of Turkey’s financial woes in a speech to the ruling Justice and Development Party’s (AKP) annual congress last week in the Turkish capital Ankara.
“Now it is time to work harder, produce more, speed up,” he told AKP delegates. “I want my citizens to invest foreign currency and gold kept at home, which is our national wealth, in various financial instruments to benefit our economy.”
This was no idle request. A few days prior, Mr Erdogan had for the third time in 20 months fired his central bank chief. The dismissal of Naci Agbal, who had raised interest rates two days earlier, in an effort to curb persistently high inflation, shocked analysts and investors who had seen his four-month tenure as restoring credibility.
He was replaced by Sahap Kavcioglu, a pro-government columnist and former banker and AKP parliamentarian, who is said to share Mr Erdogan's unorthodox view on inflation and interest rates. When markets opened Monday the Turkish lira quickly lost 15 per cent of its value, falling near record lows against the US dollar before regaining some ground.
Turkey's main stock market erased its gains for the year and recorded its worst two-day stretch since the 2008 financial crisis. The Economist called Mr Agbal's firing a "debacle", while prominent Turkish economist Mustafa Sonmez wondered if Mr Erdogan had committed economic suicide.
Since a mid-2018 currency crisis, the lira has lost nearly half its value against the dollar and Turks have become increasingly reluctant to watch their savings evaporate. The President urged his worried countrymen to invest in Turkish instruments, highlighting the benefits of Islamic ones in particular, but many have other ideas.
Turks' total investment in gold is equal to about 40 per cent of gross domestic product, according to Bloomberg, while dollar- and euro-denominated savings are also sizeable. Recently a fourth alternative has emerged. The cryptocurrency market remains unregulated in Turkey, with no tax laws or licensing requirements for traders.
The suicide of a young Istanbul couple, who left their baby with a neighbour, shows the extent of hardships
This, plus the falling lira and bitcoin’s five-fold leap in value in recent months, has driven sharp Turkish interest. As of early 2021, Turkey’s two main crypto exchanges, Paribu and BtcTurk, averaged more than $1 billion in daily trading.
A February survey by the German consumer research firm Statista ranked Turkey fourth globally in terms of crypto ownership, at 16 per cent of the population. A 30-year-old Turkish crypto investor says the digital currency has come to mean two things to Turkish youth: “future and freedom”.
Mr Agbal’s dismissal sped up this trend. The next day internet searches for “Bitcoin” quadrupled in Turkey, hitting Google’s highest search value. Turkey’s crypto exchanges saw a record $6 billion in trades over a 24-hour period and registrations of Turkish users on British crypto exchange CEX.IO leapt nearly 800 per cent.
Turkey’s central bank is unlikely to start regulating the crypto space anytime soon, as its plate is full trying to calm market jitters. It is too soon to predict the extent to which Turkish interest in crypto currencies might shape markets, but it could be an increasingly appealing alternative if the lira remains weak and economic despair deepens.
Last month, the joint suicide of a young Istanbul couple, who left their one-year-old child with a neighbour, highlighted how more and more Turks facing financial hardship are taking the most drastic steps. Just last week, the Turkish Musicians and Performers Union (Muzik-Sen), announced that more than 100 musicians have committed suicide since the start of the pandemic, most after losing their jobs and receiving inadequate state aid.
Turkey was one of the few countries to avoid economic contraction in 2020, and it is still some way from the desperation of Lebanon, where the economy faces total collapse, as people in Beirut wrestle over basics in grocery stores. But such scenes may be in Turkey's future.
With Covid-19 lockdowns driving more than 1.5 million Turks into poverty, about 20 per cent of the country now lives below the poverty line. Around seven in 10 have significant debt, one in three have difficulty buying food or heating their home, and 40 per cent of people under 30 are unemployed.
Meanwhile, the pandemic's third wave is cresting as new daily cases top 30,000, equalling Turkey's December peak. This is likely to mean more lockdowns, and more income-free weeks for countless people as inflation and lira depreciation bite. Many observers criticised the AKP for inviting hundreds of party members from around the country to gather for days in proximity indoors, with many attendees not wearing masks at last week's congress.
Losing popularity, the AKP has sought to rally its base by highlighting its conservatism and Islamic bona fides. For many, this explains Mr Erdogan's recent decision to pull Turkey out of the world's leading compact for preventing violence against women, the Istanbul Convention, which Islamists saw as challenging their views of the traditional family.
Another way the government has pushed Islam is by employing the significantly expanded Diyanet, or Directorate of Religious Affairs, to promote deprivation and resignation. The Diyanet writes the Friday sermons for Turkey’s 82,000 mosques, and in recent weeks the speeches have repeatedly praised poverty and obedience to authority.
The Diyanet has issued fatwas advising people to cut down on unnecessary purchases and go to farmers' markets in the late afternoon to save money. Another sermon reminded Turks that "poor people are closest to God". Last week, as markets shuddered, the chief imam of Istanbul's iconic Hagia Sophia mosque tweeted: "God will test believers with fear and hunger, with a decline in their lives and belongings, but God will award the patient ones at the end."
But the president is singing a different tune, arguing in his speech that the latest fluctuations do not reflect the economy’s fundamentals, and pointing to the thousands of new businesses and robust infrastructure as reasons the Turkish economy is headed for a new peak.
Towards the end of his speech Mr Erdogan unintentionally underscored his government’s failings: “The pandemic has revealed very clearly that the powerful states are not the ones that have a lot of money,” he said, “but the ones that offer the best service to their citizens in times of need.”
In a time of grave need, Mr Erdogan’s government is removing safeguards – a steady hand at the central bank, Covid-19 restrictions, the Istanbul Convention – while telling its increasingly desperate citizenry to have faith and obediently accept their fate. Apparently Turkey is not yet as powerful as its leader seems to think.
David Lepeska is a Turkish and Eastern Mediterranean affairs columnist for The National
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
Q&A with Dash Berlin
Welcome back. What was it like to return to RAK and to play for fans out here again?
It’s an amazing feeling to be back in the passionate UAE again. Seeing the fans having a great time that is what it’s all about.
You're currently touring the globe as part of your Legends of the Feels Tour. How important is it to you to include the Middle East in the schedule?
The tour is doing really well and is extensive and intensive at the same time travelling all over the globe. My Middle Eastern fans are very dear to me, it’s good to be back.
You mix tracks that people know and love, but you also have a visually impressive set too (graphics etc). Is that the secret recipe to Dash Berlin's live gigs?
People enjoying the combination of the music and visuals are the key factor in the success of the Legends Of The Feel tour 2018.
Have you had some time to explore Ras al Khaimah too? If so, what have you been up to?
Coming fresh out of Las Vegas where I continue my 7th annual year DJ residency at Marquee, I decided it was a perfect moment to catch some sun rays and enjoy the warm hospitality of Bab Al Bahr.
Countdown to Zero exhibition will show how disease can be beaten
Countdown to Zero: Defeating Disease, an international multimedia exhibition created by the American Museum of National History in collaboration with The Carter Center, will open in Abu Dhabi a month before Reaching the Last Mile.
Opening on October 15 and running until November 15, the free exhibition opens at The Galleria mall on Al Maryah Island, and has already been seen at the Jimmy Carter Presidential Library and Museum in Atlanta, the American Museum of Natural History in New York, and the London School of Hygiene and Tropical Medicine.
More on Quran memorisation:
The specs: 2017 Maserati Quattroporte
Price, base / as tested Dh389,000 / Dh559,000
Engine 3.0L twin-turbo V8
Transmission Eight-speed automatic
Power 530hp @ 6,800rpm
Torque 650Nm @ 2,000 rpm
Fuel economy, combined 10.7L / 100km
Padmaavat
Director: Sanjay Leela Bhansali
Starring: Ranveer Singh, Deepika Padukone, Shahid Kapoor, Jim Sarbh
3.5/5
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'The Lost Daughter'
Director: Maggie Gyllenhaal
Starring: Olivia Colman, Jessie Buckley, Dakota Johnson
Rating: 4/5
More from Rashmee Roshan Lall
Results
Men's finals
45kg:Duc Le Hoang (VIE) beat Zolfi Amirhossein (IRI) points 29-28. 48kg: Naruephon Chittra (THA) beat Joseph Vanlalhruaia (IND) TKO round 2.
51kg: Sakchai Chamchit (THA) beat Salam Al Suwaid (IRQ) TKO round 1. 54kg: Veerasak Senanue (THA) beat Huynh Hoang Phi (VIE) 30-25.
57kg: Almaz Sarsembekov (KAZ) beat Tak Chuen Suen (MAC) RSC round 3. 60kg: Yerkanat Ospan (KAZ) beat Ibrahim Bilal (UAE) 30-27.
63.5kg: Abil Galiyev (KAZ) beat Nouredine Samir (UAE) 29-28. 67kg: Narin Wonglakhon (THA) beat Mohammed Mardi (UAE) 29-28.
71kg: Amine El Moatassime (UAE) w/o Shaker Al Tekreeti (IRQ). 75kg: Youssef Abboud (LBN) w/o Ayoob Saki (IRI).
81kg: Ilyass Habibali (UAE) beat Khaled Tarraf (LBN) 29-28. 86kg: Ali Takaloo (IRI) beat Emil Umayev (KAZ) 30-27.
91kg: Hamid Reza Kordabadi (IRI) beat Mohamad Osaily (LBN) RSC round 1. 91-plus kg: Mohammadrezapoor Shirmohammad (IRI) beat Abdulla Hasan (IRQ) 30-27.
Women's finals
45kg: Somruethai Siripathum (THA) beat Ha Huu Huynh (VIE) 30-27. 48kg: Thanawan Thongduang (THA) beat Colleen Saddi (PHI) 30-27.
51kg: Wansawang Srila Or (THA) beat Thuy Phuong Trieu (VIE) 29-28. 54kg: Ruchira Wongsriwo (THA) beat Zeinab Khatoun (LBN) 30-26.
57kg: Sara Idriss (LBN) beat Zahra Nasiri Bargh (IRI) 30-27. 60kg: Kaewrudee Kamtakrapoom (THA) beat Sedigheh Hajivand (IRI) TKO round 2.
63.5kg: Nadiya Moghaddam (IRI) w/o Reem Al Issa (JOR).
The specs: 2018 Maserati Levante S
Price, base / as tested: Dh409,000 / Dh467,000
Engine: 3.0-litre V6
Transmission: Eight-speed automatic
Power: 430hp @ 5,750rpm
Torque: 580Nm @ 4,500rpm
Fuel economy, combined: 10.9L / 100km
'Young girls thinking of big ideas'
Words come easy for aspiring writer Afra Al Muhairb. The business side of books, on the other hand, is entirely foreign to the 16-year-old Emirati. So, she followed her father’s advice and enroled in the Abu Dhabi Education Council’s summer entrepreneurship course at Abu Dhabi University hoping to pick up a few new skills.
“Most of us have this dream of opening a business,” said Afra, referring to her peers are “young girls thinking of big ideas.”
In the three-week class, pupils are challenged to come up with a business and develop an operational and marketing plan to support their idea. But, the learning goes far beyond sales and branding, said teacher Sonia Elhaj.
“It’s not only about starting up a business, it’s all the meta skills that goes with it -- building self confidence, communication,” said Ms Elhaj. “It’s a way to coach them and to harness ideas and to allow them to be creative. They are really hungry to do this and be heard. They are so happy to be actually doing something, to be engaged in creating something new, not only sitting and listening and getting new information and new knowledge. Now they are applying that knowledge.”
Afra’s team decided to focus their business idea on a restaurant modelled after the Leaning Tower of Pisa. Each level would have a different international cuisine and all the meat would be halal. The pupils thought of this after discussing a common problem they face when travelling abroad.
“Sometimes we find the struggle of finding halal food, so we just eat fish and cheese, so it’s hard for us to spend 20 days with fish and cheese,” said Afra. “So we made this tower so every person who comes – from Africa, from America – they will find the right food to eat.”
rpennington@thenational.ae
Killing of Qassem Suleimani
Mica
Director: Ismael Ferroukhi
Stars: Zakaria Inan, Sabrina Ouazani
3 stars
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
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Brief scores:
Toss: South Africa, chose to field
Pakistan: 177 & 294
South Africa: 431 & 43-1
Man of the Match: Faf du Plessis (South Africa)
Series: South Africa lead three-match series 2-0
The biog
Favourite book: You Are the Placebo – Making your mind matter, by Dr Joe Dispenza
Hobby: Running and watching Welsh rugby
Travel destination: Cyprus in the summer
Life goals: To be an aspirational and passionate University educator, enjoy life, be healthy and be the best dad possible.
Schedule:
Friday, January 12: Six fourball matches
Saturday, January 13: Six foursome (alternate shot) matches
Sunday, January 14: 12 singles
Set-jetting on the Emerald Isle
Other shows filmed in Ireland include: Vikings (County Wicklow), The Fall (Belfast), Line of Duty (Belfast), Penny Dreadful (Dublin), Ripper Street (Dublin), Krypton (Belfast)
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The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
McIlroy's recent struggles
Last six stroke-play events (First round score in brackets)
Arnold Palmer Invitational Tied for 4th (74)
The US Masters Tied for 7th (72)
The Players Championship Tied for 35th (73)
US Open Missed the cut (78)
Travellers Championship Tied for 17th (67)
Irish Open Missed the cut (72)
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
A Long Way Home by Peter Carey
Faber & Faber
The Travel Diaries of Albert Einstein The Far East, Palestine, and Spain, 1922 – 1923
Editor Ze’ev Rosenkranz
Princeton
Spider-Man%202
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%20Insomniac%20Games%0D%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20%20Sony%20Interactive%20Entertainment%0D%3Cbr%3E%3Cstrong%3EConsole%3A%20%3C%2Fstrong%3EPlayStation%205%0D%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%205%2F5%3C%2Fp%3E%0A
THE DETAILS
Solo: A Star Wars Story
Dir: Ron Howard
Starring: Alden Ehrenreich, Emilia Clarke, Woody Harrelson
3/5
How does ToTok work?
The calling app is available to download on Google Play and Apple App Store
To successfully install ToTok, users are asked to enter their phone number and then create a nickname.
The app then gives users the option add their existing phone contacts, allowing them to immediately contact people also using the application by video or voice call or via message.
Users can also invite other contacts to download ToTok to allow them to make contact through the app.
Third Test
Result: India won by 203 runs
Series: England lead five-match series 2-1
Results
5pm: Maiden (PA) Dh80,000 (Turf) 2,200m; Winner: Gurm, Antonio Fresu (jockey), Eric Lemartinel (trainer)
5.30pm: Handicap (PA) Dh80,000 (T) 1,600m; Winner: Al Nafece, Al Muatasm Al Balushi, Mohammed Ramadan
6pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 1,200m; Winner: Ashton Tourettes, Adrie de Vries, Ibrahim Aseel
6.30pm: Arabian Triple Crown – Group 3 (PA) Dh300,000 (T) 2,200m; Winner: Ottoman, Adrie de Vries, Abdallah Al Hammadi
7pm: Liwa Oasis – Group 2 (PA) 300,000 (T) 1,400m; Winner: Hakeemat Muscat, Szczepan Mazur, Ibrahim Al Hadhrami
7.30pm: Handicap (TB) Dh80,000 (T) 1,600m; Winner: Ganbaru, Antonio Fresu, Musabah Al Muhairi
Roger Federer's record at Wimbledon
Roger Federer's record at Wimbledon
1999 - 1st round
2000 - 1st round
2001 - Quarter-finalist
2002 - 1st round
2003 - Winner
2004 - Winner
2005 - Winner
2006 - Winner
2007 - Winner
2008 - Finalist
2009 - Winner
2010 - Quarter-finalist
2011 - Quarter-finalist
2012 - Winner
2013 - 2nd round
2014 - Finalist
2015 - Finalist
2016 - Semi-finalist
The specs: 2018 Opel Mokka X
Price, as tested: Dh84,000
Engine: 1.4L, four-cylinder turbo
Transmission: Six-speed auto
Power: 142hp at 4,900rpm
Torque: 200Nm at 1,850rpm
Fuel economy, combined: 6.5L / 100km
'Outclassed in Kuwait'
Taleb Alrefai,
HBKU Press
Match info
Newcastle United 1
Joselu (11')
Tottenham Hotspur 2
Vertonghen (8'), Alli (18')
F1 line ups in 2018
Mercedes-GP Lewis Hamilton and Valtteri Bottas; Ferrari Sebastian Vettel and Kimi Raikkonen; Red Bull Daniel Ricciardo and Max Verstappen; Force India Esteban Ocon and Sergio Perez; Renault Nico Hülkenberg and Carlos Sainz Jr; Williams Lance Stroll and Felipe Massa / Robert Kubica / Paul di Resta; McLaren Fernando Alonso and Stoffel Vandoorne; Toro Rosso TBA; Haas F1 Romain Grosjean and Kevin Magnussen; Sauber TBA
