Can foreign money save Turkey's economy?

Turkey has become a top destination for wealthy Gulf tourists injecting much-needed dollars into the country’s economy. But tourism is only a fraction of the capital pouring in from the Middle East.

Between 2016 and 2019, Qatar increased its investments in Turkey by nearly 500%, replacing countries like Germany and Russia as its second largest foreign direct investor.

Toward the end of 2021, a policy of détente toward Saudi Arabia and the United Arab Emirates began, allowing Turkey to secure accords worth billions of dollars with its former rivals.

“Turkey has big gross external financing needs, which is basically demand for dollars,” said Timothy Ash, an emerging markets strategist at BlueBay Asset Management.

“It was logical to go offshore. Go abroad, try and find someone to give them the dollars.”

Since 2019, the Turkish central bank spent more than $100 billion to keep the lira afloat due to an ongoing currency crisis.

Gulf states offered relief, either in the form of currency swap lines or direct deposits. But critics warn these short-term measures to boost foreign exchange reserves may not cure the country’s chronic problems.

“Turkey is spending more than it can and it should. It borrows money from the so-called friendly countries to finance its short-term capital needs. This obviously cannot continue for a long time,” said Bilge Yilmaz, chief economist of the opposition Good Party.

Watch the video to understand why Turkey needs Gulf money.

#CNBC #Turkey #Erdogan #MiddleEast #SaudiArabia #UAE #Qatar #Egypt

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[GuruKhatri]

Nice to see Middle Easterns countries helping each other instead of fighting wars

[abdullahshah]

Here is an idea:
How about turkey fixes its own economy.

[fishing-gardening-travelling]

Turks are my brothers and sisters. I'm going to Turkey Antalya 🇹🇷 in August 2023 to support their economy.

[Kiki-envm]

Relying on money from other nations is a bad idea.

[hilestoby]

The speed of rising interest rates have caught nations with debt off guard. The rise makes payments more expensive especially those with poor credit ratings. Investments are reduced in those areas making it harder to generate business and pay off obligations to creditors.

[missema]

There has been an opening to Saudi- Turkish relations. So I expect more economic cooperation

[AKTBS]

🇹🇷 🤝🏻 🇦🇷


Financial mismanagement

[davidyolchuyev]

Short answer: because Turkey doenst have money.

Bye

[ArabianQuirkSA]

Saudi Arabia been helping them and they deny the support, they don’t even deserve anything. Ungrateful

[americandreemdreamer]

Falling of lira is temporary and superficial. Turkish economy have great chance to become to top economy in Europe

[saimadhavarao]

Nice and informative video, had no idea the situation in Turkey was so dire.

[fost]

Turkiye is running out of money, the money will keep falling because of those economic choices, if Turjiye don"t change these strategies it will be realy bad.

[berkbuyan]

When Türkiye solves energy issue there will be no more economic problem at all. Zengezur corridor is going to open soon, blacksea gas connection has just started a few months ago. And it is time to fix mediterranean sea energy issue. Not easy but we will succeed for sure..

[allysoobratty]

Turkiye should make Agreements with All Arab Countries to CONCLUDE Currency Swap....

[mustafakhaliqi]

Always did from 1900 Turkey has been rescued economically by west money which eventually cost them empire . And that would be always the case.. The only thing that Turkey has is it geopolitical location. Nothing else even Turkey is taking huge advantage of this situation still would be vulnerable cause Turkey hasn’t got anything to off-the-peg world.

[abcd-fszf]

In long years turkey isolated it self from the region but now they realized that they arent european and nato doesnt want them anymore

[Kuyamoko]

Every countries need other countrys money. West and Isael also got their money from africa and other countries

[strategic]

For Turkey to move away the western financial system, which is used to manipulate the Turkish currency
The Bric's financial system is the future for global South, away from the USA and Anglo-Saxon hegemony

[mikechil]

Bad relationships w every neighbor that’s Fact begging for money 💰 Mr erdog 😅

[bob]

Iraqis are the largest foreign investors in Turkish Property 🇮🇶🇮🇶