USD/TRY exceeded a record level of 9.00 after falling to 8.92 with the optimistic current account balance figures released yesterday. The currency is traded at 9.01 this morning and continues its upward trend.
Still, the Central Bank Governor Sahap Kavcioglu said that depreciation in TRY is not related just with the interest rate cut, in his presentation to the Parliament’s Planning and Budget Commission yesterday. “We haven’t made a surprise interest rate cut. We prepared a roadmap to reduce the interest rate in August-September. There’s no malpractice in the bank’s decisions besides this,” he noted.
In the meantime, the negotiation process on the Turkish Employers Association of Metal Industries (MESS) Collective Labor Agreement starts today. The agreement concerns nearly 130,000 workers at 179 companies operating in the metal business line, including automotive, home appliances and electronics sectors. One of the employee side, Turkish Metal Workers Union (Turk Metal Sendikası), demands 29.57% rise for the first six months (H1) of the first year, inflation compensation for H2 of the first year. Negotiations will continue for 60 days.
The positive developments in relations between Turkey and UAE have started to be reflected on economic relations. The UAE Federation of the Chambers of Commerce and Industry (FCCI) and the Foreign Economic Relations Board of Turkey’s (DEIK) Turkey-UAE Business Council organized its first meeting at Abu Dhabi. The real estate is the leading sector of UAE investment in the country, according to Humaid Mohamed Ben Salem, Chairman of the FCCI who also said they will promote UAE-based companies to invest and form new partnerships in Turkey.
As part of the country’s new green strategy, a presidency on climate change will be established in to tackle the issue in a more elaborate manner, according to President Recep Tayyip Erdogan. He also said the Ministry of Environment and Urbanization will be renamed as the Environment, Urbanization and Climate Change Ministry.
DAILY AGENDA
The Industrial Production Index surged by 13.8% in August, compared to the same month of the previous year, according to the Turkish Statistical Institute (TurkStat). The index rose by 5.4% on a monthly basis.
The Total Turnover Index jumped 48.1% in August, compared to the same month of the previous year, according to TurkStat. The index also increased by 4.0% on a monthly basis.
Retail sales volume with constant prices surged by 15.0% in August, compared to the same month of the previous year, according to TurkStat. Retail turnover with current prices jumped 37.3% in the same period.
President Recep Tayyip Erdogan will virtually attend the G20 Extraordinary Leaders’ Meeting on Afghanistan.
The Parliament’s General Assembly will continue to discuss the legislative proposal on Tax Procedure Law and amendment of some laws.
Trade Minister Mehmet Mus will attend the G20 Trade and Investment Ministerial Meeting in Italy.
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