Qatar Extends $10bn Swap Deal With Turkey; Economists Doubtful China-Style Model Will Work

LOCAL NEWS

• Qatar extends its currency swap deal with Turkey following meetings yesterday. In 2020, Turkey received $10bn from a swap deal signed in May, which will be rolled over in 2021.
  • This comes as Erdogan pushes hard to attract foreign currency in the region.
  • Sources say there is a possibility that Erdogan will meet with Saudi’s crown Prince Mohammed Bin Salman in the coming weeks
• VP Oktay says exchange rate fluctuations are not in line with economic realities , calling them ‘manipulation’ while accusing some circles of acting against Turkey at the 2022 budget presentation.
  • Notes changes in global supply chains and Turkey’s geographical location as vital opportunities for Turkey to become a global production centre. Says Turkey will manage risks effectively and not give up on its fiscal discipline and growth targets
• Local economist says Erdogan’s claims to follow a China-style growth model will not work and risks seeing a more authoritarian leadership style from the AKP going into 2023 elections with human rights deteriorating.
  • Also notes that Turkey lacks the large, inexpensive workforce to implement such policies, unless the migrant population is mobilised by govt.
• HealthMin says the domestic Turkovac vaccine is effective against Covid-19, voicing concern over the slow pace of vaccinations with second-dose rates below 75% in 30 provinces