Today, the Central Bank’s (CB) third Inflation Report of the year will be announced by CB Governor Sahap Kavcioglu. Kavcioglu, who will also make a presentation, will answer questions at the meeting where the report will be announced. The year-end inflation forecast, which stood at 42.80% for 2022, is expected to be revised upward. Inflation is estimated to hit 69.94% this month according to the CB’s Survey of Market Participants. Experts say they expect the CB to raise the year-end inflation above 60% for 2022.
Turkey’s benchmark stock index Borsa Istanbul closed with gains yesterday, rising 0.28% to 2,544.12 points. Starting the day at 2,550.85 points, Borsa Istanbul’s BIST 100 index gained 6.99 points from the previous close of 2,537.12. Finishing the day with a market value of around TRY 2tr, the benchmark index posted a daily trading volume of TRY 27.5bn. The company and equity-based activity may increase with corporate financial statements, which have started to be announced as of yesterday, according to analysts. They say the market will focus on the CB’s third inflation report of the year and the Monetary Policy Committee’s (PPK) minutes from the meeting. Analysts also stated that 2,480 points will be the support level and 2,570 points will be the resistance level for the BIST 100 index, in technical terms.
Exporting companies have started to seek a ‘backdoor’ after the CB forced them to sell 40% of their export revenues to the bank and sell 30% of foreign exchange (FX) in case of the usage of rediscount credits. While these implementations have caused a peak in imported raw material stock, exporting companies have started to establish firms in Europe, notably in the UK and Netherlands, make out invoices through these overseas firms and bring revenues to these countries. Exporting companies which establish foreign firms mainly operate in the plastics sector. However, companies operating in the textile and ready wear sectors have also started to head towards this method, according to daily DUNYA.
The Istanbul-based Joint Coordination Center (JCC) for grain export was officially opened with a ceremony. Turkey’s national defense minister and Ukraine’s infrastructure minister spoke by phone about preparations for Ukrainian grain shipments from the country’s Black Sea ports, according to a statement from the National Defense Ministry. Hulusi Akar and Oleksandr Kubrakov expressed satisfaction over the opening of the JCC. The two ministers also exchanged ideas on the preparations for the grain shipments, which are supposed to start this week. Akar and Kubrakov stressed the need for the continuation of reciprocal support and coordination in the process, the statement added.
The Economic Confidence Index dropped by 0.2% to 93.4 in July, compared to the previous month, according to the Turkish Statistical Institute (TurkStat).
The CB will announce the third Inflation Report of the year (10.30 a.m.).
The CB will release the Summary of the PPK meeting held on July 21 (2.00 p.m.).
The Central Bank will release weekly monetary and banking statistics (2.30 p.m.).
>> The 6-month return of companies which have opened the FX-protected TRY deposit accounts will hover around 31.79%, according to daily DUNYA.
>> The total amount in FX-protected TRY deposit accounts has reached TRY 1.06tr as of July 15, according to the Banking Regulation and Supervision Agency (BDDK).
>> Credit card expenditures jumped 85% in the first quarter of the year, compared to the same period of the previous year, according to an analysis prepared jointly by the Union of Chambers and Commodity Exchanges of Turkey (TOBB) and the U.S.-based financial services corporation Visa. Credit card expenditures surged by 55% in 2021, year-over-year.
>> Bulgarian tourists will no longer require a visa to visit Turkey, according to an Official Gazette statement published yesterday. The visa exemption was approved for touristic purposes and transit passes with a maximum residence period of 90 days within 180 days.
>> The consolidated net profit of Sabanci Holding’s banking subsidiary, Akbank, totaled TRY 21.15bn in the first half of the year.
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