The adverse impact of high inflation on businesses has been again brought to the fore with with a statement by the President of the Union of Chambers and Commodity Exchanges of Turkey (TOBB), Rifat Hisarciklioglu. He said there was a vital need for inflation accounting for Turkish companies and that the business world expects steps to be taken towards this issue. The President of the Turkish Exporters Assembly (TIM) and Chairpeople of the Chambers and Commodity Exchanges of leading cities told daily DUNYA that inflation has had a destructive impact on enterprises and capital melt will be inevitable if inflation accounting isn’t implemented. They also said inflation accounting will contribute to the continuation of exports and employment increases. Business world representatives also added that inflation accounting will also draw the attention of financial markets, increase interest in TRY securities, and contribute to financial stability.
The rollover rate of the Treasury-backed FX-Protected TRY deposit accounts (KKM) hovers around 70%, according to Treasury and Finance Minister Nureddin Nebati. Speaking at the Parliament’s Planning and Budget Commission during 2023 budget talks, Nureddin Nebati stated that 2.3 million depositors have placed around TRY 1.5tr in savings in KKM accounts as of November 9. Noting that the Treasury has made nearly TRY 91.6bn in support payments for KKM accounts to date, Nebati said KKM accounts have a 27% share in total deposit accounts. The Treasury and Finance Minister also added that the Real Effective Exchange Rate (REER) appreciated by 16.7% compared to the beginning of the year.
International credit rating agency Moody’s upgraded Turkey’s economic growth forecast from 4.5% to 5.3% for this year in its latest report. The institution, which kept Turkey’s GDP forecast steady at 2% for 2023, estimates the country’s economic growth at 3% in 2024.
Turkey’s benchmark stock index ended yesterday at 4,467.10 points, hitting another all-time high. Borsa Istanbul’s BIST 100 index earned 2.43% or 106.14 points from the previous close with a daily trading volume of TRY 105.5bn. The index’s highest value was 4,498.30 points during the day. Lower than expected inflation data in the US has positively affected markets, according to analysts. However, they said concerns over the cryptocurrency market, increasing COVID-19 cases in China, and uncertainties about the elections in the U.S. will affect the global markets. Analysts also stated that 4,220-4,280 points will be the support level and 4,500 points will be the resistance level for the BIST 100 index, in technical terms.
DAILY AGENDA
The current account balance posted a USD 2.97bn deficit in September, according to the Central Bank. The 12-month rolling current account deficit amounted to USD 39.16bn in September.
The Industrial Production Index dropped by 1.6% in September, month-over-month, according to the Turkish Statistical Institute (TurkStat). The index increased by 0.4% annually.
The total turnover index, including the manufacturing, construction, trade, and services sectors jumped 134.1% in September, year-over-year, according to TurkStat. The index rose by 3.8% on a monthly basis.
Meanwhile…
>> Residents’ FX deposit accounts increased by USD 198m in the week ending on November 4, compared to the previous week, according to parity-adjusted data from the Central Bank.
>> Residents’ FX deposit accounts totaled USD 244.59bn in the week ending on November 4, according to the Central Bank.
>> Foreigners’ net equity and corporate bond acquisitions amounted to USD 38.1m and USD 5.7, respectively, while their net government debt securities outflow from Turkey totaled USD 8.2m in the week ending on November 4, according to the Central Bank.
>> The Central Bank’s international net reserves rose by USD 1.09bn to USD 14.53bn in the week ending on November 4, compared to the previous week. The bank’s total reserves declined by USD 498m to USD 113.68bn in the same period.
>> The total amount in FX-protected TRY deposit accounts (KKM) rose from TRY 1.46tr to TRY 1.47tr in the week ending on November 4, compared to the previous week, according to the Banking Regulation and Supervision Agency (BDDK).
>> The banking sector’s total loan volume increased from TRY 7.17tr to TRY 7.39tr and its total deposits fell by TRY 6.69bn, or 0.1%, to TRY 8.42tr in the week ending on November 4, compared to the previous week, according to BDDK.
>> The net profit of the energy firm Aksa Enerji jumped 381% to TRY 3.91bn in January-September, compared to the same period last year.
