Turkey finance – Otel Moni http://otelmoni.com/ Mon, 03 May 2021 08:09:22 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.1 https://otelmoni.com/wp-content/uploads/2021/05/cropped-icon-32x32.png Turkey finance – Otel Moni http://otelmoni.com/ 32 32 Type Tantrum 2.0: Beware of TUCKANS https://otelmoni.com/type-tantrum-2-0-beware-of-tuckans/ https://otelmoni.com/type-tantrum-2-0-beware-of-tuckans/#respond Mon, 03 May 2021 04:05:37 +0000 https://otelmoni.com/type-tantrum-2-0-beware-of-tuckans/

One year after Covid-19 pandemic, the global economy faces a growing risk of a balance of payments crisis. In fact, 2020 has already seen a record seven defaults on the sovereign debt of Argentina, Belize, Ecuador, Lebanon, Zambia and Suriname (which have defaulted twice) . In this context, any new shock could plunge the weaker countries into chaos.

What could be the next shock? A Taper Tantrum 2.0.

After all, with a $ 7.3 billion stimulus rocket locked and loaded, the U.S. economy should destroy in a booming recovery. This could prompt the Federal Reserve to start curbing its ultra-loose monetary policy sooner than expected, with serious consequences for Emerging Markets.

We’ve seen this before: in 2013, the Fed’s comments on ending the bond buying program launched after 2008 financial crisis caused an exodus of capital from emerging markets, as well as a significant depreciation of their currencies.

The good news is that this time around, many emerging markets are in a better position than they were in 2013. On the one hand, current account deficits are lower, including in major economies. India, Brazil, Mexico, Turkey and South Africa. . This suggests that these EMs are overall less dependent on foreign capital inflows than they were in 2013 – at least for now. Second, despite the enormous Monetary easing Following the Covid-19 crisis, credit growth is at more sustainable levels, particularly in Brazil, Colombia, Russia, India, the Philippines and Indonesia. This may reflect less demand for credit in the midst of the crisis and will reduce short-term growth prospects, but it also indicates lower liquidity risk than in 2013-14.

“The good news is that this time around, many emerging markets are in a better position than they were in 2013”

In terms of inflation, Argentina, Nigeria, and Turkey could post average annual inflation rates well above 10%, well above their 2013 levels, but for other emerging markets, inflation will likely stay under control. This allows central banks to support their national economies, and possibly governments, in case external credit dries up.

And while emerging market currencies are expected to remain volatile, real effective exchange rates are currently less strained after a year of widespread depreciation. This means that there is less risk of a repeat of a substantial depreciation this time around. Finally, monetary policy is ultra-loose in many emerging markets and is expected to remain broadly accommodative for the foreseeable future, providing space to mitigate any impact of any Fed tapering.

But there are still weak spots: in Turkey, Argentina, Ukraine, South Africa, Romania and Chile, external debt payments due over the next 12 months significantly exceed the level of foreign exchange reserves. official held by central banks.

In fact, in Turkey debt is more than four times greater than reserves. In addition, the share of public debt held by non-residents exceeded 35% of total public debt in Indonesia, Ukraine, Kenya, Romania, Argentina, Turkey, Chile and South Africa. This increases the risk of a sudden reallocation of capital from emerging markets to the United States and financial market turmoil if the Fed raises rates earlier than expected, and without warning.

So which countries are most at risk of facing reality?

Meet the TUCKANS: Turkey, Ukraine, Chile, Kenya, Argentina, Nigeria and South Africa. Taking into account the liquidity risk (based on the current account balance, short-term external debt, import hedging and private sector credit growth) and cyclical risk (based on the risk of currency, inflation, dependence on commodities, stocks and bonds), these emerging markets are most likely to face the music in the event of Taper Tantrum 2.0, especially if Fed actions are not well communicated.

Ludovic Subran is Chief Economist, Allianz SE

The post office Type Tantrum 2.0: Beware of TUCKANS appeared first on Views of emerging markets.


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Ethereum exceeds $ 3,000 https://otelmoni.com/ethereum-exceeds-3000/ https://otelmoni.com/ethereum-exceeds-3000/#respond Mon, 03 May 2021 02:01:30 +0000 https://otelmoni.com/ethereum-exceeds-3000/

Bloomberg

Wealthy Americans fleeing tax hikes could lead to a switch to ETFs

(Bloomberg) – The burgeoning ETF industry may be poised to attract even more liquidity in the years to come, as wealthy Americans facing higher capital gains taxes seek to limit what they owe Uncle Sam. Compensation of $ 1 million a year on investment profits would accelerate a change that has already seen hundreds of billions of dollars migrate from mutual funds to funds traded on the stock exchange, according to market watchers. This is because ETFs are generally more tax efficient, resulting in fewer capital gains disbursements which for some may soon become much more expensive. in asset allocations in recent years. While the administration’s plan is still in its infancy and will certainly be the subject of scrutiny by lawmakers in the months to come, even a gradual increase in the earnings rate equity would likely boost ETF use, according to David Perlman, ETF strategist at UBS Global. Wealth management. “If the capital gains tax rates are higher, if you have a choice of a structure that helps defer capital gains and gives you more control over when to recognize those gains, you would be more inclined to to go that route, ”Perlman said. When an investor leaves a mutual fund, the fund manager must sell securities to raise cash for redemption. The same investor leaving an ETF can sell their shares to another investor, which means that neither the fund nor its manager has made a taxable transaction. The ETF issuer trades the underlying securities of the fund with a market maker rather than making transactions in cash – meaning the ETF rarely makes a taxable sale. A study carried out in December by researchers at universities Villanova and Lehigh revealed that over the past five years, ETFs have applied a tax on average. 0.92% lower charge than active mutual funds. Additionally, especially for high net worth investors, tax considerations have overtaken both performance and fees as the primary driver of flows out of active mutual funds to ETFs, the results show. be a godsend for ETFs, ”said Nate Geraci, chairman of the ETF Store, an advisory firm, via email. “Despite significant market share gains by ETFs over the past decade, there are still trillions of dollars stuck in less tax efficient mutual funds.” Last year alone, the ETF industry took in nearly $ 500 billion, while mutual funds lost around $ 362 billion, according to data compiled by Bloomberg ETF Advantage Most ETFs do not practically pass more capital on to shareholders these days. According to Todd Rosenbluth, the company’s head of ETF and mutual fund research, only 3 out of 585 in a CFRA analysis made disbursements in 2020 in an April 26 report. During the same period, 37 of the 39 domestic equity mutual funds of T. Rowe Price Group Inc. recorded a capital gain, according to the analysis. avoid paying higher capital gains taxes in the future, ”he added. The simple discussion of capital gains reminds investors of the industry’s innate tax advantages over mutual funds. Others are not convinced that a higher capital gains rate will do much to stimulate entry into ETFs. High net worth investors would have to sell their mutual fund holdings to effect the switch, which would bring significant tax liabilities in the process, said Michael Zigmont, head of trading and research at Harvest Volatility Management. “I see this tax hike is neither good nor bad for ETFs. “, Did he declare. Meanwhile, ETFs do not meet all investment needs. The U.S. retirement system remains heavily biased towards mutual funds, for example. Nonetheless, Perlman agrees with Rosenbluth that the potential tax change could even impact investors below the annual income threshold of $ 1 million. or fearing that the threshold will be lowered later, are also likely to shift their future allocations, he said. “The incentives apply more broadly than just those affected by the proposal,” Perlman said. Please visit us at bloomberg.com Subscribe now to stay ahead with the most trusted source of business news. © 2021 Bloomberg LP


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What we’re watching: Tories target Telford, broadcast overhaul https://otelmoni.com/what-were-watching-tories-target-telford-broadcast-overhaul/ https://otelmoni.com/what-were-watching-tories-target-telford-broadcast-overhaul/#respond Sun, 02 May 2021 20:00:00 +0000 https://otelmoni.com/what-were-watching-tories-target-telford-broadcast-overhaul/

Having obtained the necessary approval – albeit reluctantly – from the House for the policy set out in his inaugural budget speech, Minister of Finance Chrystia Freeland now faces a second, and perhaps even more important, cross-cutting challenge: convincing at least one opposition party to support its candidacy for the implementation of some of the measures set out in last month’s presentation, thanks to the draft omnibus law of 366 pages tabled in the Commons file on Friday.

As has become common practice under the Tiny Minority regime, in addition to a long list of budget proposals – to extend various emergency COVID-19 benefits over the summer, expand insurance coverage – employment and instituting a federal minimum wage of $ 15, to name a few. – the bill also includes several distinctly non-tax add-ons. These include new protocols for salaries and pensions of judges in the event of the resignation of a judge, as well as a proposed solution to the law prohibiting “false declarations” during election campaigns, which a judge of the Superior Court of Ontario recently ruled unconstitutional.

While such a regrouping will undoubtedly trigger light to moderate grunts from the opposition benches, no particular concerns have been raised to date regarding the content of the bill. But that could change this week, as MPs and party staff have now had the weekend to review the fine print.

Judging by how quickly he rose to the top of the Liberals’ legislative task list, they are clearly taking nothing for granted in their efforts to get the bill through the House and Senate before the recess. summer.

Last week, Government House Leader Pablo Rodriguez informed his Commons colleagues that the first round of debate will begin on Wednesday afternoon and continue until Friday if necessary. As always, however, that timeline could be scaled up if opposition parties used their combined majority to hold back its progress.

When it is finally put to a vote, the bill will automatically be considered a matter of confidence. This could spark a new wave of speculation about a hasty election – an election that, depending on how it unfolds, could continue until its final round in the upper house.

Tories target Telford, last-minute change to broadcast overhaul in latest opposition motions

Before Freeland can start defending his budget plans, the Conservatives will have another chance to temporarily take control of the House agenda, thanks to an upcoming opposition day. Judging by the latest motions added to the Order Paper, they are ready to devote the day to one of the two politically charged controversies that are currently making headlines and harassing Team Trudeau.

The first, which stands in the name of Conservative House Leader Candice Bergen, would like the House to ask Prime Minister Justin Trudeau to “fire” his longtime chief of staff, Katie Telford, “For failing to inform him of a serious allegation of sexual harassment at the highest levels of the Canadian Armed Forces and for being complicit in keeping the truth from Canadians.”

The motion comes as Tory MPs are pushing for Telford to be called to testify before the House Defense Committee for cross-examination on what exactly she knew about previous allegations of sexual misconduct against the Leader of the then Defense Staff Jonathan Vance. The move prompted Liberal committee members to ignore the clock at Friday’s meeting, temporarily preventing the bill from being votable, thanks to opposition support at the proposal their party was virtually guaranteed to lose.

The committee is scheduled to meet again on Monday afternoon, when the debate will theoretically resume. According to the latest notice, however, the meeting itself will take place in camera.

It is interesting to note that, even if the Conservatives decide to act on the motion on Tuesday and manage to convince the Bloc Québécois and the New Democrats to support it, it still would not bind the Prime Minister.

Meanwhile, a second motion now on the shortlist for Tuesday’s debate would give the Conservatives a full day to castigate the Liberals for the last-minute change to their proposal to overhaul the broadcasting regime: in particular, remove the exemption. proposed for social media, a move that sparked widespread outrage among free speech advocates and others.

If passed, the motion would cause the House to formally state that “the government’s plan to give itself sweeping new powers to regulate, censor and block social media users without effective legal protections or guarantees poses a significant threat to the law. freedom of expression for all Canadians.

However, the motion was not mentioned in that the government would not have been able to make the change in committee without the support of at least one other party. In this case, both the Bloc and the New Democrats supported the decision to change the text because they feared creating a loophole that could allow broadcasters with large audiences to evade the Canadian content rules and to disregard Canadian content rules. other broadcasting protocols.

As for the bill itself, it is still being examined clause by clause in the Canadian Heritage Committee, the next meeting being scheduled for Monday morning.

As iPolitics reported last week, the motion’s sponsor, Conservative women’s critic Rachael Harder, also launched a separate attempt to force the government to table an updated Charter statement for the bill. , on the grounds that removing the social media exemption constitutes a substantial amendment to the bill.

In any case, the Conservatives have until Monday afternoon to decide which motion to present on Tuesday. This could result in both motions being bypassed, at least for the time being, in favor of a motion already notified.

Alternatively, they could choose to go with a third new addition sponsored by the party’s foreign affairs spokesman Michael Chong, who would ask the House to “condemn Iran’s election to the United Nations Commission. on the status of women ”, which would probably be the case. thanks to everyone’s support.

Also on the House and Senate committee circuits:

HEALTH Members continue their in-depth investigation into the “emergency facing Canadians” due to the ongoing pandemic, with testimony from expert medical and public health experts, including representatives of the Canadian Cardiovascular Society, the Canadian Public Health Association, the Nunavut Department of Health, as good as Timothy Evans, Executive Director of the COVID-19 Immunity Working Group, Gregory Marchildon, University of Toronto Health Policy Research Chair, and Amir Attaran, professor at the University of Ottawa. (Monday AM)

More than INDUSTRY, MEPs will focus on the possible “economic recovery” in back-to-back roundtables with representatives from Canadians for Tax Fairness, Clean Energy Canada, Enerkem, Whitecap Resources Inc., as good as Robert Lyman, Director of the ENTRANS Policy Research Group and the League of the Wilds. (Tuesday afternoon)

Meanwhile, FINANCE Members are still going through the fine print of billions of dollars in COVID-related spending. They also monitor ‘related monetary policy’, with representatives of the Canada Mortgage and Housing Corporation, Generation squeezeand an international housing advocacy group The passage on the witness list this week. (Tuesday afternoon)

FOREIGN AFFAIRS members to receive briefing on ‘current situation’ from Russian anti-corruption crusader and outspoken critic of Putin Alexei Navalny, courtesy of his chief of staff, Leonid Volklov, which will review the latest developments in the ongoing imprisonment of Navalny and the The recent Kremlin decision to declare its organization “extremist”. (Thursday afternoon)

Deputies on the INTERNATIONAL HUMAN RIGHTS SUB-COMMITTEE will also receive an update on the situation in Hong Kong and the Philippines. (Tuesday afternoon)

The main committee has also scheduled another two-hour session to explore arms exports to Turkey, which will include testimony from the Turkish Canadian Business Council, as good as Canadian Association of Defense and Security Industries, the Aerospace Industries Association of Canada, and the Canadian Chamber of Commerce. (Tuesday afternoon)

Finally, the CANADA-CHINA RELATIONS COMMITTEE will hear from two former senior security officials – just once national security adviser Richard Fadden and Ward elcock, who led the Canadian Security Intelligence Service (CSIS) – as good as Justin Li, Director of the National Capital Confucius Institute for Culture, Language and Business, and the director emeritus of the Chinese Institute of the University of Alberta. (Monday PM)

On the Senate side:

  • NATIONAL FINANCE has blocked two days to view the latest estimates. (Monday / Tuesday morning)
  • Governor of the Bank of Canada Tiff Macklem Head towards BANKING, TRADE AND COMMERCE to discuss the latest monetary policy report. (Wednesday afternoon)
  • FOREIGN AFFAIRS AND INTERNATIONAL TRADE members will ask questions Minister of International Affairs Karina Gould on Canada’s “international response” to the pandemic, with representatives from Oxfam-Quebec and CARE Canada also on deck to testify. (Thursday morning)
  • While the bill itself awaits second reading approval, INDIGENOUS AFFAIRS launch a pre-study of the government’s candidacy to implement the United Nations Declaration on the Rights of Indigenous Peoples, starting with a joint appearance of Minister of Justice David Lametti and Carolyn Bennett, Minister of Crown-Indigenous Relations. (Friday morning)

On a walk on the ministerial hustings:

Minister of Infrastructure Catherine McKenna Launches Back-to-Back Funding Disclosures With In-Person Appearance at Montreal Headquarters Library and National Archives of Quebec. Alongside his cabinet colleague and regional deputy Marc Miller and Minister of Education of Quebec, Isabelle Charest, it will present new federal support for “the region’s recreational and sports infrastructure”. (Monday AM)

Later in the morning, she will team up with Mayor of Ottawa Jim Watson and representatives of Community Foundation of Ottawa and the Plants Pool Recreation Association to highlight the funding of the city’s seniors. (Monday AM)

Meanwhile, Minister of Seniors Deb Schulte Will “share highlights” from his government’s latest budget and recap his efforts to help seniors during the pandemic, in a virtual meeting with members of Canadian Association of Retired Persons (CARP). (Monday PM)

Learn more about iPolitics


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Limited funding holds back the full potential of Syrian SMEs in Turkey https://otelmoni.com/limited-funding-holds-back-the-full-potential-of-syrian-smes-in-turkey/ https://otelmoni.com/limited-funding-holds-back-the-full-potential-of-syrian-smes-in-turkey/#respond Sun, 02 May 2021 10:48:00 +0000 https://otelmoni.com/limited-funding-holds-back-the-full-potential-of-syrian-smes-in-turkey/

Syrian entrepreneurship has untapped potential in Turkey, the country hosting the largest number of refugees from the war-torn country; However, there are several challenges facing Syrian small and medium-sized enterprises (SMEs), according to a recent review by a non-governmental organization (NGO).

Spark, an international NGO, organized a virtual conference funded by the European Union on the topic entitled “Job Creation in Turkey: Access to Finance for Syrian and Turkish SMEs”.

During the event, the urgent need of Syrian and Turkish SMEs in Turkey to increase their access to finance to develop further while creating jobs was addressed.

Based on research conducted using online questionnaires and face-to-face interviews, the main issues expressed by SMEs at all levels regarding banking and financial services were developed at the conference, which took place. presented such challenges for the first time.

Syrian SMEs have substantial growth potential, according to the report, but there are structural challenges. Their temporary protection status, for example, leads to restrictions such as limitations on their free movement. In addition, other challenges include the language barrier, a lack of knowledge of the Turkish economic system and difficulties in registering their businesses and employees.

About 30% of Syrian companies surveyed are startups, while 70% are classified as SMEs with less than 100 workers. Among all the companies surveyed, 80% of the companies are micro-enterprises, 18% are small enterprises and only 2% are medium-sized enterprises according to the number of workers.

About 40% of them operate in the food and retail sector, while 20% in wholesale trade, 20% in textile and clothing manufacturing, 10% in food services. education and 10% in other sectors.

Although some companies started operating right after 2011, when war broke out and they started pouring into neighboring Turkey, most of the companies were established between 2016 and 2017.

Responses given to the online questionnaire and those obtained in face-to-face interviews revealed that almost all of them target the local market – for Syrian consumers only – and only 30% say they target the local market. export markets in addition to local markets. And although 90% of Syrian SMEs plan to stay in the country and expand their business if financial resources are provided and more space for their businesses becomes available, currently only 70% are registered in accordance with the requirements of human rights law. Turkish business.

Access to financing

Regarding the problems of access to financing, for some, it starts from very basic requirements such as opening a bank account to acquire a credit card or transfer money.

The report points out that it seems almost impossible for a Syrian under temporary protection status to obtain a bank loan, leading him to turn to informal loans from family or friends.

On the banking side, Syrian SMEs are largely overlooked as they are small and risky for the lender as they lack credibility, are unregistered, or operate with an unregistered employee.

One of the most significant points, however, from a banking perspective, is that they originate from a country subject to sanctions and are likely to export to “countries at risk”.

“Having a Syrian name on the board can be a problem for banks that fear international sanctions,” the report said.

After the outbreak of the Syrian civil war in 2011, Turkey adopted an “open door policy” for people fleeing the conflict, granting them “temporary protection” status.

Although many countries welcome the persecuted, Turkey is home to the world’s largest refugee population with 4 million refugees – over 3.7 million from Syria.

Turkey has made significant investments in social cohesion policies to enable Syrians to integrate smoothly into Turkish society.

In addition to 33,000 university students, more than half a million Syrian children are enrolled in schools across Turkey, according to UNICEF. They learn the Turkish language, as well as other disciplines.

The overall activity rate of Syrians in Turkey is 38% and Syrian entrepreneurs have started more than 20,000 businesses.

Although some Syrians are business owners or co-owners with Turkish nationals, a large number of Syrians in Turkey work in the service sector. According to United Nations figures, more than 130,000 work permits have been granted and more than 10,000 Syrian entrepreneurs have had the opportunity to set up a business in Turkey.

Ankara has so far spent around 40 billion dollars (274 billion Turkish liras) on Syrians in Turkey, while the European Union has provided only around 3 billion euros (3.34 billion dollars ) out of the 6 billion euros pledged – a gap that Turkey has been asking for for a long time.

The panel pointed out that the country generally offers the best opportunities for Syrian refugees in the region; however, the financial and public sectors are not used to working with migrants or refugees in general and it is difficult to harness their potential.

As a result, SMEs find it difficult to comply with regulations or access the Turkish market and do business with even other Turkish companies in the same industry, the report adds.

Spark Turkey – part of the NGO that operates in 14 regions in the Middle East, North Africa and Sub-Saharan Africa since its creation in 1994 – supports the development of the business plan of Turkish and Syrian entrepreneurs by providing support to education. and access to finance. Through collaborations with higher education and vocational training institutions, it also offers educational support to Syrian refugees in Turkey. It aims to meet the needs of the business world with the educational support provided to young people.


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Count the costs of the defense failure to read it https://otelmoni.com/count-the-costs-of-the-defense-failure-to-read-it/ https://otelmoni.com/count-the-costs-of-the-defense-failure-to-read-it/#respond Sat, 01 May 2021 00:00:00 +0000 https://otelmoni.com/count-the-costs-of-the-defense-failure-to-read-it/


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Turkey leads the war on cryptocurrencies and investors lose a fortune https://otelmoni.com/turkey-leads-the-war-on-cryptocurrencies-and-investors-lose-a-fortune/ https://otelmoni.com/turkey-leads-the-war-on-cryptocurrencies-and-investors-lose-a-fortune/#respond Fri, 30 Apr 2021 18:11:37 +0000 https://otelmoni.com/turkey-leads-the-war-on-cryptocurrencies-and-investors-lose-a-fortune/

Turkey is facing a crisis that is not unique to emerging economies: soaring inflation, falling demand for its debt and murderous unemployment rate. Add to that a docile central bank governor indebted to autocratic President Recep Tayyip Erdoğan who is not above installing his son-in-law as finance minister, and you have all the conditions for rampant cryptocurrency speculation.

This speculation came to an abrupt end two weeks ago when Turkey revealed its intention to ban such software-based “digital tokens” as payment from April 30 in an attempt to combat a theft of the Turkish lira. tanking.

This decision frightened investors. A few days after the announcement of the newly installed director of the central bank, Thodex, as well as another exchange platform in Turkey called Vebitcoin, collapsed. Thodex founder Fatih Faruk Özer fled to Albania and a number of his family members were arrested by authorities, state security officials said.

An international manhunt is currently underway to locate Özer, 27, and secure $ 2 billion in digital tokens he allegedly stole from 390,000 users of Thodex, the exchange platform he founded.

Although a social media account in Özer’s name denied claims that he had fled with investor money, Turkish authorities have reportedly issued a “red notice”, an international wanted person alert. When contacted by Fortune, Interpol declined to comment without the consent of Turkish authorities.

Distraught investors

Either way, digital tokens are nowhere to be found and investors across Turkey are helpless. Estimates vary for how much they lost.

Aykan Erdemir, senior director of the Turkey program of the Foundation for the Defense of Democracies, said the central bank ban raised concerns that even the holding of cryptocurrencies, a hedge against double-digit inflation and devaluation to read it, is ultimately declared illegal.

“This was basically an attempt by the government to try to control Turkey’s payments ecosystem. Ultimately, Erdoğan’s eyes are on the savings of Turkish citizens, ”he said. in a podcast.

“Cryptocurrency is Turkey’s last frontier. It’s almost as if the last safe haven citizens believe is beyond Erdoğan’s reach.

The developments capped a turbulent start to the year for Turkey in which Erdoğan sacked its hawkish central bank governor, Naci Ağbal, in March just four months after the start of his mandate to fight against runaway inflation, now indexed at 16%.

Many Turks have sought to protect their savings by converting them into digital and physical assets like gold. Agbal’s successor, the country’s fourth monetary policy chief in two years, paradoxically, high rates are in fact responsible for the rise in prices rather than their solution.

But digital currencies have not turned out to be the safe havens they were looking for.

“Whenever someone invests in such highly speculative assets such as cryptos, they must at all times be prepared to face the eventuality of a complete loss of their capital,” said Oliver Geiseler, partner at Capco financial services consulting firm. Fortune.

Prior to the crackdown, estimates suggested that between $ 1 billion and $ 2 billion in cryptocurrency were traded daily across the world, and Turkey was tied with Peru for fourth with around 16% of the total, according to one. Statista survey recently cited by the World Economic Forum.

A growing number of consumers are hoping to guard against the loss of their purchasing power by diversifying into digital tokens. Proponents argue they offer protection in a world where institutions like the Federal Reserve penalize savers by keeping interest rates at zero and increasing the money supply, in part to ease tensions on state treasuries.

Speculation

The prices of digital currencies like Ethereum and Dogecoin have recently increased amid increasing social acceptance, with [hotlink]You’re here[/hotlink] even accept bitcoin since this year. Industry insiders warn, however, that the Turkish debacle proves they may not be for amateurs.

Renato Fazzone, of FTI Consulting’s technology practice in Düsseldorf, warned that the explosion of interest in Bitcoin, driven by trends such as those seen in Turkey, could backfire on investors at any time.

“Consumers drawn to the opportunity for quick wins should leave cryptocurrencies alone unless they have studied the issue in depth, as these assets are extremely volatile and lack real regulation,” the CEO said. main. Fortune.

“At the same time, platforms must take into account the responsibility they carry on behalf of their clients, screening them in advance to assess their level of sophistication and risk appetite in order to protect them against serious unintentional mistakes, ”he added.

The Managing Director of the Basel-based Bank for International Settlements (BIS), Agustín Carstens, Bitcoin exploded earlier this year, arguing that it lacked intrinsic value and consumed more electricity than all of Switzerland.

“If digital currencies are needed, central banks should be issuing them,” he said in January.

The BIS, which represents the interests of the Fed, Bank of England and others, warned this month that oversight of cryptocurrencies remains at an infancy stage, with many of the world’s leading economies being still developing an approach to crypto assets.

Selfish motivations?

While the Turkish government, worried about the Lira leaking, may harbor selfish motivations to crack down on currencies beyond its direct control, there are many legitimate regulatory concerns about the double risk of tokens used for money laundering and the financing of terrorism.

In October, the United States’ Financial Crimes Enforcement Network imposed a $ 60 million fine against Larry Dean Harmon, the founder of crypto service providers Helix and Coin Ninja, after the bureau discovered that some of the 1.2 million undocumented transactions involved narcotics dealers, counterfeiters and other criminals.

“There is one principle in banking circles that is particularly important in the context of digital tokens, which is ‘KYC’ – know your customer,” said Geiseler of Capco. “If it turns out that the cryptocurrency you received in a transaction was acquired illegally, you may be considered an accomplice in the worst case.”

It’s not just Turks who are embracing the digital token trend. According to a survey carried out by an American broker [hotlink]Charles Schwab[/hotlink], young British investors are twice as likely to buy an asset like Bitcoin as they are to buy stocks.

“Cryptocurrencies appear to be the flavor of the month,” UK Managing Director Richard Flynn said in a statement suggesting a note of disapproval. “A diversified portfolio, balanced across asset classes and sectors, is a smarter, more time-tested approach.”

The company told analysts last week that it would like to see “more regulatory clarity»Before entering the market.

In the case of Turkey, regulatory clarity came from a partial ban. For now at least, owning digital tokens is still legal even if paying with them is not.

This can only be a cold comfort to the thousands of Turks who have put their money in cryptocurrencies. But investing in unregulated assets that badly exist alongside legal tender issued by the fiat government is not for the faint of heart.

This story was originally featured on Fortune.com




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UPDATE 2-Erdogan says Turkey expects more COVID-19 vaccines soon https://otelmoni.com/update-2-erdogan-says-turkey-expects-more-covid-19-vaccines-soon/ https://otelmoni.com/update-2-erdogan-says-turkey-expects-more-covid-19-vaccines-soon/#respond Fri, 30 Apr 2021 12:47:08 +0000 https://otelmoni.com/update-2-erdogan-says-turkey-expects-more-covid-19-vaccines-soon/

(Adds comments from the Minister of Health)

ISTANBUL, April 30 (Reuters) – Turkey currently has enough doses of the COVID-19 vaccine and more injections will arrive soon from Russia and China, President Tayyip Erdogan said on Friday.

Speaking two days after his health minister warned that vaccines would become more scarce in the next two months, Erdogan said Turkey expected to receive a “serious” amount of doses from Moscow and Beijing.

Turkey has so far used vaccines developed by Chinese companies Sinovac Biotech and Pfizer / BioNTech. Almost 14 million people, or 16% of the population, have received at least one vaccine and another 9 million have been fully immunized.

“I do not accept that we have problems with purchasing vaccines,” Erdogan said.

“With the talks we are currently having with Russia, the Sputnik V vaccine is on its way,” he said, adding that he would speak to Russian President Vladimir Putin about the purchase if necessary.

Erdogan also said he will discuss the vaccine supply during the first half of May with Chinese President Xi Jinping and that more doses will also be delivered by BioNTech and Pfizer. “God willing, I believe it will be a wonderful situation.”

Health Minister Fahrettin Koca said on Wednesday Turkey had signed a deal for 50 million doses of Sputnik V which would start arriving in May and help address a short-term supply drop.

Turkish medical authorities said on Friday they had granted emergency use authorization for Sputnik V.

The Russian Direct Investment Fund (RDIF), responsible for marketing Sputnik V, said a Turkish company would also produce the bullet at its factories.

Later on Friday, Koca said Turkey would receive 1 million doses of the Pfizer / BioNTech vaccine in May and that there were no issues with the option to purchase an additional 30 million in June.

He said Turkey currently had a stockpile of 6 million Sinovac and BioNTech vaccines, adding that the Sputnik V vaccine would start being administered “as soon as possible”.

Turkish state broadcaster TRT Haber reported on Friday that Koca and Foreign Minister Mevlut Cavusoglu would visit Russia on May 12 to discuss vaccines and tourism.

Russia is Turkey’s biggest source of foreign visitors, with around 6 million Russians visiting each year before the pandemic.

Moscow said earlier in April that it had restricted flights to and from Turkey until June 1 due to an increase in COVID-19 infections.

Turkey’s tourism revenue fell 40% and foreign visitor arrivals fell 54% in the first quarter, data showed Friday. (Reporting by Tuvan Gumrukcu; Additional reporting by Ali Kucukgocmen; Writing by Dominic Evans; Editing by Ece Toksabay and David Clarke)

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Coronavirus: New York City will allow bars to sit from next week – as it happened https://otelmoni.com/coronavirus-new-york-city-will-allow-bars-to-sit-from-next-week-as-it-happened/ https://otelmoni.com/coronavirus-new-york-city-will-allow-bars-to-sit-from-next-week-as-it-happened/#respond Wed, 28 Apr 2021 22:45:32 +0000 https://otelmoni.com/coronavirus-new-york-city-will-allow-bars-to-sit-from-next-week-as-it-happened/

Poland will reopen outdoor pools, non-essential stores, museums, art galleries, restaurants and terraces in the coming days, with the central European country registering fewer cases of the coronavirus.

The relaxed rules, which are expected to be in effect from Saturday, when more sporting activities are allowed, come as recent figures give rise to “cautious optimism,” the prime minister said, outlining plans for the reopening of the economy.

“The data we receive on infections allows us to make decisions related to the thaw in the economy,” Mateusz Morawiecki said during a press briefing Wednesday with Minister of Health Adam Niedzielski. “These data justify such cautious optimism.”

Stores in malls, DIY and furniture stores will open from Tuesday, with social distancing rules in place, Morawiecki said.

Hotels are due to reopen on May 8, at 50% occupancy, while restaurant and café terraces can do so a week later.

Cinemas, theaters and indoor restaurants can open on May 29, also when students of all ages can return to class.

“Probably, when it comes to infections, the worst is behind us, but we must also remember that around 25,000 people are still hospitalized,” said the Prime Minister. “A return to normal depends mainly on the vaccination rate,” he added.

Poland has recorded 8,895 coronavirus cases and 636 deaths linked to Covid-19 as well as underlying conditions, the latest figures released on Wednesday showed. More than 10 million Poles have received at least one dose of the vaccine, or around 21% of the population.

The third wave of the coronavirus hit the healthcare system particularly hard in March and April, pushing it closer to its limits as Poland went through its most difficult days in the pandemic. The more infectious B.1.1.7 strain of the virus first detected in the UK caused the outbreak, accounting for 90% of new cases in the country.


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Turkey’s Bitcoin Skewers No More As Crypto Ban Looms https://otelmoni.com/turkeys-bitcoin-skewers-no-more-as-crypto-ban-looms/ https://otelmoni.com/turkeys-bitcoin-skewers-no-more-as-crypto-ban-looms/#respond Wed, 28 Apr 2021 14:16:00 +0000 https://otelmoni.com/turkeys-bitcoin-skewers-no-more-as-crypto-ban-looms/

Kebab chef Kadir Öner had hoped to boost his new business by accepting payments in cryptocurrencies, but a ban by Turkish authorities will force him next month to fall back on payment methods as traditional as his spit-roasted meat.

Interest in cryptocurrencies has exploded in Turkey and Öner says customers have used them to pay between 5% and 10% of their bills.

“The world is adapting to the digital age and we have to get on with it,” Öner said, adding that crypto payments were easier than banking transactions and would have accounted for a growing share of his doner kebab sales if given. allowed to continue.

Chef Kadir Öner works in the kitchen of his restaurant which accepts payments with Bitcoin and Dexchain in Istanbul, Turkey on April 27, 2021 (Photo Reuters)

But the Central Bank of the Republic of Turkey (CBRT) sees dangers in the new practice and on April 16 banned the use of cryptocurrencies and crypto-assets for purchases from April 30, citing damages ” irreparable ”and transaction risks.

Turkey’s already growing cryptocurrency boom has accelerated further over the past year, as investors joined a global Bitcoin rally, hoping to profit from the growth of cryptocurrency, s ‘shelter against inflation which climbed above 16% in March and protect their savings due to the depreciation of the Turkish lira.

Authorities last week also opened investigations into possible fraud at two cryptocurrency exchanges, and CBRT Governor Şahap Kavcıoğlu said the Finance Ministry was working on broader regulations regarding cryptocurrency. currencies.

The collapse of Thodex and Vebitcoin, among the country’s largest trading platforms, struck a blow to hundreds of thousands of Turkish cryptocurrency investors, who were unable to access millions of dollars in digital assets after the fall of the exchange.

Turkey is said to be speeding up work on new regulations as the government seeks to create a central depository bank to eliminate counterparty risk, a Bloomberg report said on Tuesday.

The authorities are also said to be considering a capital threshold for exchanges and training requirements for executives of these companies.

Cryptocurrencies remain little used for global commerce even as they become more and more mainstream assets, although companies such as Tesla Inc. and travel site Expedia Group Inc. accept such payments.

In Turkey, companies such as hairdressers and small grocery stores started accepting payments for convenience because they also held cryptocurrencies, said Altuğ Işler, founder of news site Kripto Teknik.

If the industry was well regulated, there would be potential for more cryptocurrency transactions, he said, but the central bank had chosen the “simpler option” by shutting it down.

“The ban has become a serious problem for financial technology companies working in this field and they have started to take the crypto payment ban to court,” said Işler. “I think the government will make an effort to introduce regulations into the cryptocurrency market and relax this ban.”


A cashier accepts payment through a cryptocurrency app at a kebab restaurant that accepts Bitcoin and Dexchain in Istanbul, Turkey on April 27, 2021 (Photo Reuters)
A cashier accepts payment through a cryptocurrency app at a kebab restaurant that accepts Bitcoin and Dexchain in Istanbul, Turkey on April 27, 2021 (Photo Reuters)

Trading volumes in Turkish crypto exchanges doubled at the weekend after the central bank’s ban on payments for crypto assets compared to the previous weekend, according to data from US researcher Chainalysis and the data company Kaiko negotiations shared with Reuters.

Cryptocurrency trading volumes often increase during times of volatility, with short-term traders looking to profit from price fluctuations. Many market players say this is a key attraction of the emerging asset.

Plans shelved

In the covered halls of Istanbul’s 15th-century Grand Bazaar, cryptocurrency exchange store Cointral can no longer sell gold for cryptocurrencies, its founder Uğur Hakan Çakan said.

He also had to suspend a new initiative for e-commerce sites offering crypto-asset payments.

“We are selling gold, real estate and we were preparing to launch a new service … but the project is now shelved with the new regulations,” Çakan said.

“I hope this ban is a transition until the necessary regulations are implemented,” he said, adding that gold for cryptocurrency sales was popular.

Chief Öner says he will survive the ban on crypto payments, which had been used to buy more than 1,500 of his skewers since it opened in March, but he also hoped the move would be temporary.

“I am sure that when the necessary legal regulations are passed, we will win back the customers we have lost due to this ban.”


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No more skewers for bitcoins as Turkey’s crypto-payment ban looms https://otelmoni.com/no-more-skewers-for-bitcoins-as-turkeys-crypto-payment-ban-looms/ https://otelmoni.com/no-more-skewers-for-bitcoins-as-turkeys-crypto-payment-ban-looms/#respond Wed, 28 Apr 2021 13:56:33 +0000 https://otelmoni.com/no-more-skewers-for-bitcoins-as-turkeys-crypto-payment-ban-looms/

By Ezgi Erkoyun

ISTANBUL (Reuters) – Kebab chef Kadir Oner had hoped to boost his new business by accepting payments in cryptocurrency, but a ban by Turkish authorities will force him next month to fall back on payment methods as traditional as his roast meat at the spit.

Interest in cryptocurrencies has exploded in Turkey, where double-digit inflation and a falling lira make them an attractive alternative investment, and Oner says clients have used them to settle between 5% and 10% of their invoices.

“The world is adapting to the digital age and we need to get on with it,” Oner said, adding that crypto payments were easier than banking transactions and would have been a growing share of his doner kebab sales if he was given it. allowed to continue.

But the Central Bank of Turkey sees dangers in the new practice and on April 16 banned the use of cryptocurrencies and crypto assets for purchases from April 30, citing “irreparable” damage and risk of loss. transaction.

Authorities last week also opened investigations into possible fraud at two cryptocurrency exchanges, and Central Bank Governor Sahap Kavcioglu said the Finance Ministry was working on broader regulations regarding cryptocurrencies. .

Cryptocurrencies remain little used for global commerce even as they become more and more mainstream assets, although companies such as Tesla Inc and travel site Expedia Group Inc accept such payments.

In Turkey, companies like hairdressers and small grocery stores started accepting payments for convenience because they also held cryptocurrencies, said Altug Isler, founder of news site Kripto Teknik.

If the sector was well regulated, there would be potential for more cryptocurrency transactions, he said, but the central bank had chosen the “simpler option” by shutting it down.

“The ban has become a serious problem for financial technology companies working in this area and they have started to take the crypto payment ban to court,” Isler said. “I think the government will make an effort to introduce regulations into the cryptocurrency market and relax this ban.”

Trading volumes in Turkish crypto exchanges doubled at the weekend after the central bank’s ban on payments for crypto assets compared to the previous weekend, according to data from US researcher Chainalysis and the data company Kaiko negotiations shared with Reuters.

Cryptocurrency trading volumes often increase during times of volatility, with short-term traders looking to profit from price fluctuations. Many market players say this is a key attraction of the emerging asset.

ESTABLISHED PLANS

In the covered halls of Istanbul’s 15th-century Grand Bazaar, cryptocurrency exchange store Cointral can no longer sell gold for cryptocurrencies, its founder Ugur Hakan Cakan said.

It also had to suspend a new initiative for e-commerce sites offering crypto asset payments.

“We are selling gold, real estate and we were getting ready to launch a new service … but the project is now shelved with the new regulations,” Cakan said.

“I hope this ban is a transition until the necessary regulations are implemented,” he said, adding that gold for cryptocurrency sales was popular.

Chief Oner says he will survive the ban on crypto-payments, which had been used to buy more than 1,500 of his skewers since it opened in March, but he also hoped the move would be temporary.

“I am sure that when the necessary legal regulations are passed, we will win back the customers we have lost due to this ban.”

(Additional reporting by Emin Caliskan and Bulent Usta in Istanbul, and Tom Wilson in London; Writing by Ezgi Erkoyun; Editing by Dominic Evans and Alexandra Hudson)


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