The Price Stability Committee convenes for the first time under the presidency of Treasury and Finance Minister Nureddin Nebati today. The main agenda item of the meeting has been specified as ‘inflation developments and risks towards inflation outlook in the coming period’.
Foreign exchange rates, which sharply dropped last week, have started to fluctuate again at the beginning of this week. USD/TRY, which decreased by 40% after it saw 18.40 last week, started the day at 12.40-12.45 before it saw below 11.50 levels yesterday. USD/TRY hovers around 11.89 this morning. Low-size transactions due to Christmas Holiday in the global markets have a fluctuating impact on FX rates.
To support the financial stability by increasing the share of TRY in total deposits/participation funds in the banking system, the Central Bank will implement required reserve incentive for amounts to be converted from FX deposit or FX participation fund accounts to TRY deposit and TRY participation fund accounts, according to a statement from the bank.
Borsa Istanbul’s BIST 100 index rose by 0.31% to 1,897.13 points from Friday’s closing of 1,891.28 points.
Food prices rose by 25.75% in November, compared to the previous month, according to a survey conducted by the Confederation of Turkish Trade Unions (TURK-IS). Prices also jumped by 54.96% last month on an annual basis. The survey also pointed out that the monthly food expenditure required for a healthy, balanced, and sufficient nutrition of a family consisting of four people (hunger limit) amounted to TRY 4,013.26. In addition to food expenditures, the amount to be needed to secure the necessities of life such as housing (electricity, water, heating, etc.), clothing, transportation, education, health, etc. (poverty threshold) totaled TRY 13,072.51.
The Central Bank will release international reserves and foreign currency liquidity numbers for November.
President Recep Tayyip Erdogan will attend TUBITAK (The Scientific and Technological Research Council of Turkey) and TUBA (The Turkish Academy of Sciences) Science Awards (2.00 pm).
The Union of Chambers and Commodity Exchanges of Turkey (TOBB) Joint Council Meeting will be held at 2.00 PM.
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Our Eco Analysis columnist Alaattin Aktas examines the possible impacts of the Foreign Currency Protected TRY Deposit Accounts (KKM) on the Treasury.