USD/TRY has started the week with an upward trend. USD/TRY broke another record of the year at 17.84 yesterday. Thus, TRY has depreciated for the third consecutive week. TRY devaluation has exceeded 16% since the beginning of April and 25% since the beginning of 2022. USD/TRY is traded at 17.86 this morning.
Turkey’s benchmark stock index, Borsa Istanbul, meanwhile, jumped 1.27% to end yesterday at 2,548.49 points. BIST 100 index gained 31.94 points from Friday’s close of 2,516.56 points, with a daily trading volume of TRY 28.5bn. Investors have focused on the financial statements of companies, which will be announced this week. Company and equity-based activities are expected to increase, according to analysts. They said 2,480 points will be the support level and 2,550 points will be the resistance level for the BIST 100 index, in technical terms.
While the management of the economy continues its focus on macroprudential measures by keeping the Central Bank’s policy rate steady at 14% for seven consecutive months, the interest rate in the market continues to head upwards. The interest rate charged for consumer loans rose to 35.41%, hitting a 4-year high in the week ending on July 15. The average interest rate for commercial loans increased to 30.66% in the same period. The figure indicates a 10-point hike compared to the average interest rate charged for commercial loans before the last policy rate cut. The difference between the loan interest rate and the funding interest rate from the Central Bank reached 20 points despite the government’s insistence that they will continue a low-interest rate policy. Experts say this is the first time the difference has reached this high a level.
The Financial Stability Committee convened under the presidency of Treasury and Finance Minister Nureddin Nebati. The Committee discussed the possible reflection of the course of global inflation and commodity prices on macroeconomic indicators and the impact of tightening in global financial conditions on developing countries. “We’ve discussed in detail the impact of economic developments on our country’s financial system, recent developments in the banking and insurance sectors, and impacts of macroprudential measures on the credit market. Our committee will continue to take necessary steps in coordination and collaboration in the upcoming period,” Nureddin Nebati said on Twitter following the meeting.
President Recep Tayyip Erdogan called on parties who signed a deal last week to unblock Ukraine’s Black Sea grain exports to respect and implement the pact. “We expect everyone to take ownership of their signatures and act in line with their responsibilities,” Erdogan said in an interview with the national broadcaster TRT Haber. “With this agreement, the effects of the global food crisis, which is reaching a serious point, will begin to ease,” he added. Touching on Russia’s weekend attack on the port of Odesa, Erdogan said it saddens Turkey, adding that a failure would work against all of us.
DAILY AGENDA
The number of road motor vehicle registrations dropped by 3.0% to 109,277 in June, compared to the previous month, according to the Turkish Statistical Institute (TurkStat).
The Central Bank will release the Residential Property Price Index for May (2.00 p.m.).
Meanwhile…
>> Ukrainian Infrastructure Minister Oleksandr Kubrakov said Kyiv is beginning to re-start exports and expects to see the agreement begin working in the coming days. “We are preparing for everything to start this week,” Kubrakov added.
>> Vodafone Turkey’s service revenues amounted to TRY 5.3bn in April-June. The company raised the total number of mobile subscribers to 27.8 million in this period.
>> The initial public offering (IPO) size of the packaging company Koroplast Temizlik Ambalaj Urunleri Sanati ve Dis Ticaret AS totaled TRY 367.4m.
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>> Startup investments slow in Q2
Investments in startups slowed in the second quarter of 2022 (Q2) in Turkey. USD 114m was invested in startups in 79 funding rounds in Q2, according to the startup ecosystem intelligence platform startups.watch. This figure is the lowest funding performance in the last five quarters.
