The Central Bank kept the policy rate steady at 14% at the third Monetary Policy Committee (PPK) meeting of the year in line with the market expectations. The most salient change in the PPK statement was that the Monetary Policy Committee linked the start of the disinflationary process with the resolution of the ongoing regional conflict. The PPK replaced the expression “current account surplus” with “a sustainable current account balance” and mentioned the “geopolitical risks that evolved into conflict” in the first paragraph of the statement.
Treasury and Finance Minister Nureddin Nebati convened with foreign investors in London. “The TRY devaluation, unfortunately, has been determinative in the high course of inflation,” Nebati said, stressing that they are determined to permanently reduce inflation. Touching on the green economy, the Treasury and Finance Minister added: “Our approach is to accelerate the green transformation of the Turkish economy and create a carbon-neutral economic development and growth model. As part of the Paris Agreement, green finance will play a critical role in achieving our global goals. We’ve recently implemented regulations that will move the green finance architecture forward. Turkey has taken steps to form a green bond and Sukuk market at the public and private sector levels.”
The UK government will provide a EUR 2.1bn (USD 2.3bn) loan to fund the construction of the 503-kilometer Ankara-Izmir High-Speed Railway (HSR). The loan, which was announced by International Trade Secretary Anne-Marie Trevelyan and Treasury and Finance Minister Nureddin Nebati at the UK-Turkey Green Finance Conference held in London, will be the UK government’s biggest-ever sustainable civil infrastructure deal.
President Recep Tayyip Erdogan held a phone call with his Russian counterpart Vladimir Putin to discuss the latest developments in Ukraine and the humanitarian situation on the ground, according to the Communication Directorate. Erdogan told Putin that a permanent cease-fire between Russia and Ukraine would pave the way for a long-term solution between the two warring countries. Erdogan said Turkey maintains the sincere approach it has been displaying since the very beginning for peace to be ensured between Russia and Ukraine.
In a separate phone call, Erdogan discussed the humanitarian situation and latest developments in Ukraine with his Romanian counterpart Klaus Iohannis. The two leaders agreed to enhance “cooperation and coordination in the management of the forced migration caused by the war, as well as measures concerning the repercussions of this process on various sectors,” the Communications Directorate said.
Turkey marks the 107th anniversary of the Canakkale Victory and Martyrs’ Day and commemorates the fallen soldiers who lost their lives during naval and ground battles in Canakkale during World War I. President Recep Tayyip Erdogan will also inaugurate the 1915 Canakkale Bridge today that connects Europe and Asia. The 2,023-meter midspan of the bridge symbolizes the 100th anniversary of the Republic of Turkey, while its 318-meter steel towers symbolize March 18, 1915, the Canakkale Naval Victory.
DAILY AGENDA
The Turkish Statistical Institute (TurkStat) will release foreign trade indices for January (10:00 a.m.).
The Central Bank will release the international investment position for January (10:00 a.m.).
Meanwhile…
>> The total amount of the FX-protected TRY deposit accounts has reached TRY 561.8bn as of March 11, according to the Banking Regulation and Supervision Agency (BDDK).
>> The national flag carrier Turkish Airlines canceled 80 flights set to take off from Istanbul Airport and 20 flights set to depart from Sabiha Gokcen Airport on March 19 due to estimated bad weather.
>> Residents’ FX deposit accounts rose by USD 919m to USD 216.1bn in the week ending on March 11, compared to the previous week, according to the Central Bank.
>> Foreign investors’ net equity and government debt securities (GDS) outflow from Turkey amounted to USD 289.8m and USD 121m respectively, while net corporate bond acquisitions totaled USD 200,000 in the week ending on March 11, according to the Central Bank.
>> The Central Bank’s international net reserves dropped by USD 2.28bn to USD 15.86bn in the week ending on March 11, compared to the previous week. The bank’s total reserves decreased by USD 1.39bn from USD 110.26bn to USD 108.86bn in the same period.
