What matters on Monday, August 29

USD/TRY continues to have an upward trend above 18.00 despite the FX-protected TRY deposit accounts (KKM) while Turkish stocks, which are considered cheap on a USD basis, have attracted foreign investors’ interest, especially since the beginning of August. The exchange rate of foreigners, which declined for a long time, has exceeded 35.0% on Borsa Istanbul over the last month, according to Sukru Cem Kaya, Domestic Markets Director of Ata Yatirim. Kaya says Borsa Istanbul, which has become unrivaled, may continue to rise in the medium and long-term considering the current foreign exchange (FX) rates, the real negative interest rate, and the purchase of new expectations based on the elections to be held in less than a year.

TRY 10 out of every TRY 100 of the cash and short-term financial investments of the 92 non-financial listed companies on Borsa Istanbul are held in KKM accounts, according to daily DUNYA. The amount of the KKM account corresponds to around 50% of cash assets and short-term financial investments of 18 of these companies. The KKM amount held by 92 companies totals TRY 32.6bn while their FX accounts amount to TRY 41bn.

The pro-Russian hacker group Killnet, which is known for its DoS (denial of service) and DDoS (distributed denial of service) attacks on government institutions and private companies in several countries during the Russia-Ukraine war, has suggested targeting the TB2 drone manufacturer Baykar, its owner, the Bayraktar Family, announced on its Telegram channel, as the company has had a big impact on the Russia-Ukraine war.

More than a million tons of grain have been shipped from Ukrainian ports since the beginning of August under the grain deal, according to a statement from the National Defense Ministry. In July, Turkey, the UN, Russia, and Ukraine signed a deal in Istanbul to reopen three Ukrainian ports for the export of Ukraine grain, which had been stuck for months due to the ongoing Russia-Ukraine war.

Regarding the agenda of the week, Tuesday is celebrating the anniversary of one of the most important victories for the Turkish nation: August 30, Victory Day. Markets will be closed due to the official holiday. 

The next day, the Turkish Statistical Institute (TurkStat) will announce second quarter growth data. The growth of the Turkish economy is expected to hover around 5.0%-8.7% in the second quarter with the support of strong exports and domestic demand, according to a Reuters poll. The 13 surveyed economists also said the growth will be at 4.0% for 2022 with the economic slowdown expected in the second half of the year due to the Central Bank’s policy rate cuts. The economy grew by 7.3% in the first quarter. 

On Thursday morning, the PMI results for August will be announced by the Istanbul Chamber of Industry. We’ll see whether the slowdown continues or not.

On Friday morning, the temporary foreign trade data for August will be announced by the Ministry of Commerce.


The Economic Confidence Index rose by 1.0% from 93.4 points to 94.3 points in August, compared to the previous month, according to TurkStat.

Turkey’s exports rose by 13.4% to USD 18.55bn and imports jumped 41.4% to USD 29.24bn in July, compared to the same month last year, according to TurkStat.


On the cover: Global integrated communication solutions agency BCW, which owns the majority stake in Effect PR, has grown by 150% in Turkey in three years. Scott Wilson, President of Europe and Africa at BCW Global, who made a visit to Istanbul with BCW Global CEO Donna Imperato earlier this month, says that this growth occurred because there is still space in Turkey for the growth of the PR industry. You can read the details on pages 8-9.

>> Professor Ilter Turan says ‘Transactional relations have undermined confidence in Turkey’ on page 10.

>> Business by Law: Labor piracy and its legal consequences. P. 11.

>> Chief Economist Gunduz Findikcioglu: Democracy and preferences. Pp. 12-13.

>> Russia’s Syria policy is to get President Recep Tayyip Erdogan to solve the problem, according to our Foreign Policy Columnist Zeynep Gurcanli. You can read the details on page 14.


>> Environment, Urbanization and Climate Change Minister Murat Kurum rejected claims about the cancellation of the Kanal Istanbul project. Stressing that the master plan is implemented, Kurum said a new development implementation change is being conducted in line with citizens’ demands and needs.

>> Turkey’s first earth observation satellite RASAT, which was developed by TUBITAK Space Technologies Research Institute (TUBITAK UZAY), has completed its mission. The satellite, which was first designed to serve for three years, had been in the orbit for 11 years.

>>The first leg of the M11 Gayrettepe–Istanbul Airport–Halkali Metro Line will be completed in November, according to Transport and Infrastructure Minister Adil Karaismailoglu. He also said the second leg of the line from Istanbul Airport to Halkali will be completed in May 2023.

>> Sabanci Holding subsidiary Kordsa, which manufactures tire reinforcement materials and composites for the automotive, aerospace, and construction industries, will make two new investments worth USD 12m in total.

>> The Financial Crimes Investigation Board (MASAK) has determined that TikTok users in Turkey have transferred around TRY 1.5bn to locals and foreigners since the beginning of 2021. Money laundering and financing of terrorism through social media platform are among the allegations levied. There are nearly 29 million TikTok users in Turkey.

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