ISTANBUL: The embattled Turkish lira on Monday lost 3.5 percent in value against the US dollar after Turkish President Recep Tayyip Erdogan named his son-in-law Berat Albayrak as finance minister in a new government.
The appointment of finance minister had been keenly awaited by markets, with the naming of Albayrak, the husband of Erdogan’s elder daughter Esra and formerly energy minister, coming as something of a surprise.
The Turkish lira lost 3.5 percent in value to trade at 4.73 lira to the dollar and lost 3.5 percent to trade at 5.5 to the euro.
There was no sign in the new government of Mehmet Simsek, the former deputy prime minister in charge of the economy and a former Merrill Lynch economist seen by markets as a reassuring figure.
There had also been rumors Erdogan was preparing to appoint a big name from outside politics to the job, but these did not come to fruition.
The lira has lost over 20 percent against the dollar this year, with markets rattled by Erdogan’s repeated urgings to the nominally independent central bank to lower rates despite high inflation.
Markets were also unnerved by a decree earlier that the central bank governor would no longer have the power to appoint his deputies.
Turkey lira slides after Erdogan son-in-law named finance chief
Turkey lira slides after Erdogan son-in-law named finance chief
- The naming of Berat Albayrak, the husband of Erdogan’s elder daughter Esra and formerly energy minister, comes as something of a surprise.
- The lira has lost over 20 percent against the dollar this year, with markets rattled by Erdogan’s repeated urgings to the nominally independent central bank to lower rates despite high inflation.
Multilateralism strained, but global cooperation adapting: WEF report
DUBAI: Overall levels of international cooperation have held steady in recent years, with smaller and more innovative partnerships emerging, often at regional and cross-regional levels, according to a World Economic Forum report.
The third edition of the Global Cooperation Barometer was launched on Thursday, ahead of the WEF’s annual meeting in Davos from Jan. 19 to 23.
“The takeaway of the Global Cooperation Barometer is that while multilateralism is under real strain, cooperation is not ending, it is adapting,” Ariel Kastner, head of geopolitical agenda and communications at WEF, told Arab News.
Developed alongside McKinsey & Company, the report uses 41 metrics to track global cooperation in five areas: Trade and capital; innovation and technology; climate and natural capital; health and wellness; and peace and security.
The pace of cooperation differs across sectors, with peace and security seeing the largest decline. Cooperation weakened across every tracked metric as conflicts intensified, military spending rose and multilateral mechanisms struggled to contain crises.
By contrast, climate and nature, alongside innovation and technology, recorded the strongest increases.
Rising finance flows and global supply chains supported record deployment of clean technologies, even as progress remained insufficient to meet global targets.
Despite tighter controls, cross-border data flows, IT services and digital connectivity continued to expand, underscoring the resilience of technology cooperation amid increasing restrictions.
The report found that collaboration in critical technologies is increasingly being channeled through smaller, aligned groupings rather than broad multilateral frameworks.
This reflects a broader shift, Kastner said, highlighting the trend toward “pragmatic forms of collaboration — at the regional level or among smaller groups of countries — that advance both shared priorities and national interests.”
“In the Gulf, for example, partnerships and investments with Asia, Europe and Africa in areas such as energy, technology and infrastructure, illustrate how focused collaboration can deliver results despite broader, global headwinds,” he said.
Meanwhile, health and wellness and trade and capital remained flat.
Health outcomes have so far held up following the pandemic, but sharp declines in development assistance are placing growing strain on lower- and middle-income countries.
In trade, cooperation remained above pre-pandemic levels, with goods volumes continuing to grow, albeit at a slower pace than the global economy, while services and selected capital flows showed stronger momentum.
The report also highlights the growing role of smaller, trade-dependent economies in sustaining global cooperation through initiatives such as the Future of Investment and Trade Partnership, launched in September 2025 by the UAE, New Zealand, Singapore and Switzerland.
Looking ahead, maintaining open channels of communication will be critical, Kastner said.
“Crucially, the building block of cooperation in today’s more uncertain era is dialogue — parties can only identify areas of common ground by speaking with one another.”
