What matters on Friday, August 26

The Central Bank released the summary of the Monetary Policy Committee (PPK) meeting held last week when the interest rate was cut from 14% to 13%. “The monetary policy stance will be determined by taking into account the evaluations on the source and permanence of risks, along with the extent to which they can be contained by monetary policy, and with a focus on achieving the sustainable price stability target cautiously,” the summary read.

USD/TRY, which exceeded 18.00 following the Central Bank’s rate cut continues to surge. While TRY has devaluated against USD for the third consecutive day, USD/TRY surpassed 18.17 and reached the highest level of 2022 yesterday. Thus, the TRY has devaluated against the USD by 18% since the end of April and by over 27% since the beginning of the year. USD/TRY is traded at 18.18 this morning.

President Recep Tayyip Erdogan made a statement about a new military operation, which is expected to be launched in the North of Syria. “I declare once again to the whole world that our struggle will not end until we secure our southern borders with a 30-kilometer-deep corridor,” President Erdogan said at a ceremony to mark the 951st anniversary of the Victory of Malazgirt. Erdogan also noted that Turkey will continue the operations according to the country’s security priorities.

Turkey’s benchmark stock index soared 2.5% to an all-time high close of 3,136.77 points yesterday. After starting the day at 3,079.00. points, Borsa Istanbul’s BIST 100 index gained 76.47 points from Wednesday’s close of 3,060.30 points. The total market value of the BIST 100 was around TRY 2.5tr by close, with a daily trading volume of TRY 71.7bn. Analysts stated that investors, who have hovered between inflation and recession, expect more certainty regarding the actions of central banks and the markets have focused on the news flow coming from the ongoing Jackson Hole Economic Symposium. They also said 3,050 points will be the support level and 3,150 points will be the resistance levels for the BIST 100 index, in technical terms.

The government will provide e-export support of up to TRY 15m for companies to prepare their marketplaces and retail e-commerce platforms for e-export and promote Turkish products and brands in foreign markets. The upper limit for the umbrella organizations has been set at TRY 150m. The support will include seven items, including reports for market penetration, digital marketplace promotion, e-export promotion, order fulfillment and warehouse rent, foreign marketplace integration, online stores and service from e-commerce stakeholders in the target countries, and marketplace commission expenses.

The first meeting on a permanent joint mechanism between Turkey, Finland, and Sweden will be held in Finland today. During the meeting, Turkey will be represented by presidential spokesman Ibrahim Kalin and Deputy Foreign Minister Sedat Onal.


No important data will be released in the country.


>> Foreign investors’ net equity and corporate bond acquisitions totaled USD 366.2m, and USD 2.7m, respectively, while their net government debt securities outflow from Turkey amounted to USD 9.5m in the week ending on August 19, according to the Central Bank.

>> The Central Bank’s international net reserves dropped by USD 1.79bn to USD 13.88bn in the week ending on August 19, compared to the previous week. The bank’s total reserves declined by USD 1.48bn to USD 112.25bn in the same period.

>> Residents’ FX deposit accounts fell by USD 1.09bn in the week ending on August 19, according to parity-adjusted data from the Central Bank.

>> The banking sector’s loan volume surged by TRY 26.65bn from TRY 6.56tr to TRY 6.59tr in the week ending on August 19, compared to the previous week, according to the Banking Regulation and Supervision Agency (BDDK).

>> The total amount of consumer loans decreased by TRY 1.48bn to TRY 934.78bn in the week ending on August 19, compared to the previous week, according to BDDK.

>> The non-performing loans in the banking sector rose by TRY 305m to TRY 162.31bn in the week ending on August 19, compared to the previous week, according to BDDK.

>> The total amount in FX-protected TRY deposit accounts (KKM) increased from TRY 1.2tr to TRY 1.24tr in the week ending on August 19, compared to the previous week, according to BDDK.

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