What matters on Tuesday, September 27

The number of applications for Turkey’s new major social housing project, consisting of 500,000 homes, 250,000 pieces of land, and 50,000 offices, has reached 5 million, according to President Recep Tayyip Erdogan. Speaking after yesterday’s cabinet meeting, President Erdogan said the foundations for the first phase of the project (5,000 houses) will be laid on October 25. Discussing the Istanbul export grain deal, Erdogan stated that over 5 million tons of grain have been shipped since the beginning of the agreement. He also announced that farmers will be able to pay off their electricity bills for the previous periods with a maturity of up to five years and interest-free repayment.

Agricultural production has strategic importance for Turkey, according to Treasury and Finance Minister Nureddin Nebati. Speaking at the 2nd Turkey Farmer Summit, Nureddin Nebati said the amount allocated from the budget to support farmers increased from TRY 24bn in 2021 to TRY 39.2bn this year. “We provide premium support for 18 agricultural products today. The figure was five in 2002,” Nebati added. Touching on inflation, the Treasury and Finance Minister stated that the decline in inflation will be felt by the end of this year. Nureddin Nebati also commented on use of the Russian payment system Mir, saying that Turkey pursues a balanced policy. “President Recep Tayyip Erdogan is in talks with his Russian and Ukrainian counterparts. We won’t allow there to be trouble in the operation of financial systems,” he added.

Turkey’s benchmark stock index ended yesterday at 3,260.15 points, down 0.65% from Friday’s close. Starting the week at 3,279.03 points, Borsa Istanbul’s BIST 100 index lost 21.46 points from the previous close. The index’s lowest value during the day was 3,222.21 points, while its daily high was 3,309.95 points. The total market value of the BIST 100 was around TRY 2.6tr by market close, with a daily trading volume of TRY 54.8bn. The expectation that the high-interest rate environment will continue with inflationist concerns, as well as increasing fear of the recession, have paved the way for a low-risk appetite in the global markets, according to analysts. They said the high-traffic economic data agenda, statements of central banks’ officials, and the fluctuations in the foreign exchange market will affect the direction of markets this week. Analysts also stated that 3,140-3,200 points will be the support level and 3,370 points will be the resistance level for the BIST 100 index, in technical terms.

The Organization for Economic Cooperation and Development (OECD) upgraded Turkey’s economic growth forecast from 3.7% to 5.4% for 2022 and kept it unchanged at 3% for 2023, according to its latest report. Although the OECD has revised Turkey’s inflation forecast downward for 2022, the institution kept it above 70%. It reduced the country’s average inflation estimation from 72% to 71% for 2022 and raised it from 38.9% to 40.8% for 2023.


No important data will be released in the country.


>> Preparations for the Credit Guarantee Fund (KGF) package are in the final stage and the package won’t be less than TRY 50bn, according to the Treasury and Finance Minister Nureddin Nebati.

>> The wealth per adult declined by USD 6,618 in Turkey in 2021, according to the Global Wealth Report 2022, prepared by the Switzerland-based Credit Suisse. The decline in Turkey’s total household wealth skyrocketed to USD 367bn last year.

>> The total amount in FX-protected TRY deposit accounts (KKM) has reached TRY 1.37tr, according to Treasury and Finance Minister Nureddin Nebati. He also said the net errors and omissions in the balance of payments declined from over USD 10bn to USD 3.7bn this year, as compared to 2021.


>> Turkey among top five countries with highest food inflation

Daily DUNYA Editorial Coordinator and Columnist Talip Aktas says the Turkish Statistical Institute’s food price index, which was in line with the Food and Agriculture Organization of the United Nations (FAO) and World Bank’s food price indices, has started to differentiate as of 2013 in parallel with Turkey’s rapid foreign exchange (FX) rate hike.

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