The negotiation process for the minimum wage, which does not only concern minimum wage workers but also employees receiving a salary slightly higher than the minimum wage and all employers, has kicked off. Confederation of Turkish Trade Unions (TURK-IS) President Ergun Atalay, who convened with Labor and Social Security Minister Vedat Bilgin and Turkish Confederation of Employers’ Association (TISK) President Ozgur Burak Akkol, stated that they won’t sign any minimum wage decisions that won’t make society ‘smile’. Business world representatives also think that the minimum wage hike, which will take effect as of the new year, should be determined at a level to protect people’s purchasing power and their right to life with dignity. The parties will be required to raise the tax bracket and determine the upper limit for SGK (Social Security Institution) premiums so as to not create an additional cost above inflation.
The growth of the capital markets continues with initial public offerings (IPO), according to Treasury and Finance Minister Nureddin Nebati. Speaking at the 6th Turkish Capital Markets Summit in Istanbul, Nureddin Nebati said savings in the security and pension mutual funds have approached TRY 1tr and this is an indicator that the domestic corporate investor base has started to form. Nebati also stated that the number of IPOs has reached 33 with an IPO size of TRY 14.2bn as of November and the number of listed companies on Borsa Istanbul with IPOs has hit 482 over the past two years.
The Istanbul Wage Earners Cost of Living Index (WECLI), which indicates the movement of retail prices in Istanbul, jumped 105.55% in November, compared to the same month last year, according to the Istanbul Chamber of Commerce (ITO). The Wholesale Price Index, which reflects wholesale prices in the city, climbed by 95.72% in the same period. The Istanbul WECLI rose by 3.10%, and the Wholesale Price Index increased by 2.34% in October, month over month. The WECLI is considered a preliminary signaling indicator for overall inflation in Turkey.
DAILY AGENDA
The Trade Ministry will announce the temporary foreign trade statistics for November (11.00 a.m.).
Meanwhile…
>> Residents’ FX deposit accounts dropped by USD 5.53bn in the week ending on November 25, compared to the previous week, according to parity-adjusted data from the Central Bank.
>> Foreigners’ net equity and government debt securities acquisitions totaled USD 24.2m and USD 2.9m, respectively, while their net corporate bond outflow amounted to USD 100,000 in the week ending on November 25, according to the Central Bank
>> The Central Bank’s international net reserves rose by USD 759m to USD 19.5bn in the week ending on November 25, compared to the previous week. The bank’s total reserves declined by USD 284m from USD 122.88 to USD 122.6bn in the same period.
>> The banking sector’s total loan volume increased by TRY 55.39bn from TRY 7.16tr to TRY 7.22tr and its total deposits fell by TRY 106.58bn, or 1.2%, to TRY 8.55tr in the week ending on November 25, compared to the previous week, according to Banking Regulation and Supervision Agency (BDDK).
>> The number of foreigners residing in Turkey totals 5.23 million, according to Deputy Interior Minister and Ministry Spokesperson Ismail Catakli.
>> The impact of TRY liquidity on deposits and loan pricing is being monitored, and the impact of FX rate developments on inflation is analyzed, according to the Central Bank’s Monetary Policy Committee (PPK) Meeting Summary.
