Foreign exchange (FX) rates continue to sharply decline following the Ministry of Treasury and Finance and the Central Bank’s supports to TRY deposits, while the markets try to understand whether the public sector contributed to the decrease. USD/TRY, which fell to 10.23 before it exceeded 11.00 yesterday, hovers around 11.66 this morning.
Trade Minister Mehmet Mus said inspections will increasingly continue for those, who don’t reflect the decline in FX rates in all rings of the supply chain.
Turkey aims to become a high technology base within the new economic model, according to Treasury and Finance Minister Nureddin Nebati. Speaking in a televised interview with NTV, Nebati said the new economic model, which gives credence to the free market economy, implements FX regime, and continues this tradition, is based on a high level of exports, lowering the current account deficit, and welfare reflected at the society as a whole.
Nebati also announced the introduction of ‘project banking’. “A new instrument comes to the banking sector: project loans. We’ll choose the sectors with high competitive power while we implement this,” the Treasury and Finance Minister added. Touching on FX rates, he said: “There were speculations and manipulations in FX rates until Monday night. TRY will reach its optimal level.” In the meantime, the new FX-protected TRY deposits stood at TRY 10bn as of morning on December 23.
The monthly average labour cost amounted to TRY 5,194 in 2020, according to the Turkish Statistical Institute (TurkStat).
The Ministry of Culture and Tourism will announce foreign visitor figures for November.
The Central Bank will release the Financial Services Confidence Index for December (2.30 pm).