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Turkey central bank ready to take ‘all necessary measures’ for stability

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ISTANBUL: Turkey’s central bank on Monday announced it was ready to take “all necessary measures” to ensure financial stability after the collapse of the lira, promising to provide banks with liquidity.

“The central bank will closely monitor the market depth and price formations, and take all necessary measures to maintain financial stability, if deemed necessary,” the bank said in a statement, vowing to provide “all the liquidity the banks need.”

The statement came after the Turkish lira hit record lows against the dollar amid a widening diplomatic spat with the United States.

The detention of US pastor Andrew Brunson since October 2016 on terrorism charges has sparked the most severe crisis in ties between the two NATO allies in years.

The central bank announced the series of measures on Monday, a day after Erdogan’s son-in-law Berat Albayrak, who is treasury and finance minister, announced an action plan was in the pipeline.

“In the framework of intraday and overnight standing facilities, the Central Bank will provide all the liquidity the banks need,” the bank said.

The bank also revised reserve requirement ratios for banks, in a move also aimed at staving off any liquidity issues.

It said with the latest revision, approximately 10 billion lira, $6 billion, and $3 billion equivalent of gold liquidity will be provided to the financial system.

The nominally independent central bank has defied pressure to hike interest rates which economists said would curb the fall of the lira.

Erdogan on Saturday called interest rates as “tool of exploitation” that makes the poor poorer and the rich richer.

Source:http://www.arabnews.com/node/1355451/business-economy

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Central Bank increases year-end inflation expectation from 11.07 percent to 12.28

As top vital presidential and deputy elections to be held in Turkey on June 24 approach the administration is continuing to have issues with economy. Most recently The Central Bank of Turkey has increased its year-end inflation expectation from 11.07 percent to 12.28 percent.

Based on a monthly survey conducted by the Central Bank with 96 participants consisting of 75 financial sector, 13 real sector, and 8 professional members the year-end inflation expectation was reported to go up to 12.28 percent from 11.07 percent.

While the current year-end TÜFE (Consumer Prices Index) expectation was 11.07 percent in the previous survey period, it increased to 12.28 percent in this survey period.

The GDP growth expectation for 2018 which was 4.6 percent in the previous survey period went down to 4.2 percent in this survey period.
The year-end dollar exchange rate expectation rose from 4.44 liras in the previous survey period to 4.58 liras in this survey period
The current account deficit forecast for 2018 remained unchanged at 53.5 billion dollars in this survey period.

Source :http://businessturkeytoday.com/central-bank-increases-year-end-inflation-expectation-from-11-07-percent-to-12-28-percent.html

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Mubadala unit acquires 10% stake in offshore Egyptian gas field

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Mubadala Petroleum has announced that it has completed the acquisition from Italy’s Eni of a 10 percent interest in the offshore Shorouk concession in Egypt, which contains the giant Zohr gas field.

Following the completion, Eni, through its subsidiary IEOC, holds a 50 percent interest in the concession. The other partners in the concession are BP with 10 percent interest and Rosneft with 30 percent interest.

The Zohr field was discovered by Eni in August 2015 and is the largest natural gas field ever found in the Mediterranean, with a total potential of up to 30 trillion cubic feet of gas in place.

The field is currently producing over 1.1 billion cubic feet of gas per day (bcfd), equivalent to approximately 200,000 barrels of oil equivalent per day. Production is expected to increase to 2 bcfd by end 2018 and to reach a production plateau of 2.7 bcfd by end 2019.

Dr Bakheet Al Katheeri, CEO, Mubadala Petroleum, said: “The acquisition of a 10 percent interest in the Shorouk concession with the producing Zohr gas field is a significant portfolio addition for Mubadala Petroleum and marks our entry into Egypt.

“This world-class asset will provide Mubadala Petroleum with increasing future production, and substantial reserves, all of which support our drive for long-term and profitable growth. At the same time we have joined a world-class partnership with Eni and look forward to working closely with them to deliver the resources to meet growing local energy demand.”

Eni’s CEO, Claudio Descalzi, added: “We welcome today’s announcement with Mubadala Petroleum, a strong and reliable partner with whom we look forward to working with. Working alongside significant partners such as Mubadala Petroleum, BP and Rosneft is a further boost for the development of Zohr and underlines the quality of the asset, which will play a fundamental role in supporting Egypt’s goal of achieving energy independence.”

Source:http://www.arabianbusiness.com/energy/399126-mubadala-unit-acquires-10-stake-in-offshore-egyptian-gas-field