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Turkey’s Central Bank Faces Another Billion-Dollar Loss in 2024, Raising Alarm on Economic Stability

Turkey’s central bank has posted a staggering loss of 700.4 billion Turkish lira ($18.4 billion) for 2024, according to the latest balance sheet published in the Official Gazette. This marks a troubling continuation of financial strain, following a similar shortfall of 818.2 billion lira ($25 billion) in 2023. This deepening crisis underscores the mounting pressure on the country’s financial system, already strained by the ongoing economic turbulence, as reported by Dünya.

The losses come as a sharp contrast to the bank’s previous profits—57.5 billion lira in 2021 and 72 billion lira in 2022—highlighting the extent of the current crisis. These back-to-back deficits are largely attributed to the central bank’s controversial foreign exchange-protected deposit scheme. Launched in late 2021 to curb the plummeting value of the Turkish lira, the program aimed to stabilize the currency by compensating depositors for any losses caused by currency fluctuations. The scheme, which ended earlier this year, has placed an enormous strain on the central bank’s reserves.

As a result, the central bank has been unable to transfer any profits to the Treasury for the second consecutive year—a worrying sign for the country’s fiscal health.

In addition to the losses, the central bank’s fiscal report for 2024 shows a notable rise in its total assets, which increased from 6.92 trillion lira in 2023 to 8.59 trillion lira by the close of 2024. This growth, however, offers little reassurance in the face of the mounting financial difficulties.

Turkey’s economic outlook remains grim as inflation continues to ravage the economy. The country has battled double-digit inflation since 2019, with everyday living costs rising steadily. While the official inflation rate fell to 38.1% in March, marking its 10th consecutive month of decline, independent economists from the Inflation Research Group (ENAG) paint a much bleaker picture, estimating a 75.2% rise in consumer prices for the same period.

Compounding the country’s economic woes, a political crisis ignited by the arrest of İstanbul Mayor Ekrem İmamoğlu has further unsettled markets. The charges against İmamoğlu, widely seen as politically motivated, have only deepened uncertainty surrounding Turkey’s economic and financial future.

In response to the turbulence, the central bank has taken the drastic step of selling off foreign exchange reserves in an attempt to stabilize the lira’s exchange rate. Media reports suggest that the central bank’s losses could balloon to over $45 billion, exacerbated by the fallout from İmamoğlu’s arrest and the broader political climate.

With the central bank’s general assembly set to convene on April 30 to discuss these dismal results, the focus remains squarely on how Turkey’s financial authorities will navigate this storm of economic and political challenges.

Navigating Persistent Pressures: Labour Shortages, Bureaucracy, And Payment Delays In Limassol

Labour Shortages Challenge Expansion

Recent data from the Limassol Chamber Of Commerce And Industry underscores the enduring pressure within Limassol’s business community. Rather than indicating a sudden economic downturn, the survey reveals a gradual intensification of challenges that have long been a concern for local enterprises.

Skilled Labour In Short Supply

At the forefront is a chronic shortage of skilled labour, which accounts for 22.5% of the responses. Companies across a diverse range of sectors—from engineering and technical services to professional driving and specialized sales—are grappling with vacancies that remain open for extended periods. The persistent demand for critical skills forces many firms to overextend their existing workforce or postpone strategic projects. While recruiting talent from abroad is increasingly seen as a necessity, the process is often hampered by procedural delays, strict regulatory constraints, and rising employment costs.

Administrative Complexities And Public Sector Frustration

In addition to labour challenges, businesses express deep frustration with public-sector inefficiencies. Slow administrative procedures, fragmented communication, and a lack of clear guidance have rendered government support only marginally effective. With more than half of respondents regarding public services as minimally helpful, the inefficiencies highlight a system that frequently delays critical decisions and complicates routine business processes.

Deteriorating Payment Discipline

The survey also highlights a significant decline in payment discipline, with difficulties in collecting debts now ranking third among business concerns at 11.8%. Late payments are intensifying cash-flow pressures, extending through supply chains and further straining liquidity. Added to this is a sluggish justice system, where prolonged court delays have left companies financially exposed, often shouldering the burden of non-compliant customers while legal remedies lag behind.

Cost Pressures And Cautious Investment

Rising labour costs, intense domestic competition, and the pressure of lower-cost international markets — particularly in Asia — are driving firms to reconsider their investment priorities. Although nearly 60% of businesses intend to hire in the near term, investment plans in infrastructure, technology, and renewable energy are markedly selective. Overall sentiment remains cautious, with two-thirds of respondents expecting sales to stay level, both domestically and in overseas markets.

Calls For Policy Reforms And Digital Transformation

In an environment strained by excessive bureaucracy and inconsistent policy, businesses advocate for decisive governmental action. Respondents have pointed to the need for reduced business taxation, streamlined administrative processes, and more responsive public services. Furthermore, investment in digital transformation, artificial intelligence tools, and enhanced collaboration with academic and research institutions are seen as critical to boosting competitiveness and fostering innovation.

Conclusion: A Need For Strategic Reforms

The autumn 2025 barometer paints a picture of a resilient business community operating under increasing strain. With entrenched labour shortages, administrative inefficiencies, and deteriorating payment discipline, there is a clear call for targeted reforms. Addressing these structural challenges will be essential for ensuring that Limassol’s businesses not only sustain their current operations but also position themselves for future growth in an increasingly competitive global landscape.

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