The usage of the largest value banknotes has almost doubled after purchasing power sharply declined due to high inflation, according to daily DUNYA. The share of TRY 100 and TRY 200 banknotes in the total number of banknotes rose from 41% in January 2009, when they were put into circulation, to 88% in April 2022. The share of TRY 200 banknotes in circulation was 12% in April 2009. In the shade of annual consumer inflation, which reached 70%, its share exceeded 43% in April 2022. TRY 100, the second largest value banknote, surged from 28% to 45% in the April 2009-2022 period.
The decrease in purchasing power also paved the way for a considerable decline in the usage of the lowest value banknotes between April 2009 and April 2022. The share of TRY 5 in total circulation decreased from 0.96% to 0.61%, while the share of TRY 10 dropped from 2.94 to 1.16 and the share of TRY 20 fell from 6.48% to 1.95% in this period. The share of TRY 50, which was 26.04% of the total banknotes circulated in April 2009, fell to 8.33% in April 2022. The total share of TRY 5, TRY 10, TRY 20 and TRY 50 decreased by around 25 points from 36.42% to 12.05% in the same period.
Turkey’s manufacturing and production are not facing difficulties, according to Sekib Avdagic, Chairman of the Board of the Istanbul Chamber of Commerce (ITO). Evaluating the economic conjuncture, Avdagic said Turkey replaces canceled orders with new orders due to global developments. “Europeans don’t want to take a risk by giving a high number of orders to the Far East. They prefer Turkey as the country where they can order a small number of products. Turkey has a good performance in terms of price, quality and supply,” the ITO Chairman noted.
Regarding inflation, Avdagic stated that there is no reason to raise prices that much in the country. “An unrealistic price surge shouldn’t be implemented for the future considering the rapid hike in inflation. If we manage the process well, we can stabilize and reduce inflation,” Avdagic added. He also noted that there is no sign of a decrease in the short term of commodity prices that have rapidly increased with the impact of the Russia-Ukraine war.
Today, the Cabinet convenes with President Recep Tayyip Erdogan. Among the main agenda items for the meeting will be the Russia-Ukraine war, economic developments, counterterrorism, and the new project that will allow the voluntary return of 1 million Syrian refugees to their country.
The Parliament will convene this week on Tuesday to discuss the legislative proposal on the Turkish Penal Code and the amendment of some laws.
The Parliament’s industry, trade, energy, natural resources, information, and technology commissions will convene under the presidency of AK Party Konya Deputy Ziya Altunyaldiz this week to discuss the Law on the Foundation and Duties of the Turkish Exporters Assembly (TIM) and the Exporters’ Associations and the amendment of some laws.
The State-owned Enterprises Commission will continue audits. The commission will audit the 2019-2020 accounts of the General Directorate of Turkish Petroleum Corporation (TPAO) on Tuesday, the Directorate General of Coastal Safety and the Turkish Maritime Organization (TDI) on Wednesday and the Directorate General of Development Investment Bank of Turkey and subsidiaries and Turk Reasurans AS on Thursday.
In the meantime, the political parties will organize group meetings at the Parliament.
DAILY AGENDA
The Turkish Statistical Institute (TurkStat) will release the real profit rates created through financial investment for April (10.00 a.m.).
The Istanbul Chamber of Industry (ICI) Turkey Export Climate Index will be announced (10.00 a.m.).
The Ministry of Treasury and Finance will reissue 2-year (707 days) maturity semiannually fixed coupon bonds.
Meanwhile…
>> The U.S. Ambassador to the United Nations (UN) Linda Thomas-Greenfield has postponed her visit to Turkey’s southern border with Syria that was supposed to be made today, according to a statement from the U.S. Mission to the UN.
>> Saudia Airlines, the national flag carrier of Saudi Arabia, which had suspended its flights to Turkey as of March 2020 due to the pandemic, has restarted flights to Turkey after two years.
>> The Ministry of Industry and Technology prepared 971 investment incentive certificates in March. The amount of the certified projects totals TRY 40.69bn. These investments are estimated to employ 27,201 people.
>> The number of real estate sales totaled 995,595 in the first four months of the year, according to the Directorate General of Land Registry and Cadastre. Thus, the institution obtained TRY 10.47bn revenue from title deed fees.
>> The grocery delivery company Getir has started to offer rent-a-car services. The service, called Getir Arac, will enable users to rent a car daily or hourly. Getir acquired the rent-a-car company MOOV for USD 23m last year.
