What matters on Wednesday, June 22

The Economic Coordination Council (EKK) convened under the presidency of Vice President Fuat Oktay. Due to recent developments, the council evaluated the overall outlook of the Turkish economy, forecasts on public finance for the rest of the year, and basic issues regarding the additional budget process. The EEK also discussed measures for supply security and price stability including measures for strategic agricultural products. They also completed additional work in the light of the price hike-driven problems and interruptions in the global food supply chains. Moreover, the Council examined the steps that need to be taken to counter food inflation by taking into account the output of the Early Warning System.

The EEK, which also discussed programs such as the Technology Oriented Industrial Action Problem and Project-based Investment System, evaluated plans to increase the contribution of these implementations to economic growth and to the current account balance by raising the production capacity and decreasing the dependence on imported intermediate goods.

The Turkish Lira Overnight Participation Reference Rate (TLREFK) will be calculated and released by the Borsa Istanbul Stock Exchange as of today. The TLREFK has been formed to meet the need for a TRY short-term reference rate that can be used as an underlying asset or a benchmark in participation banks’ financial products, debt instruments, and different types of financial contracts.

A Turkish military delegation will travel to Russia this week to discuss details of a possible sea corridor in the Black Sea for Ukrainian grain exports, Turkish broadcasters said on Tuesday, citing sources from Turkey’s presidency. The broadcaster Haberturk said a four-way meeting between Turkey, Ukraine, Russia, and the United Nations (UN) would be held in Istanbul within 10 days, and President Tayyip Erdogan and UN Secretary-General Antonio Guterres could join the meeting. Reuters said, citing the sources, that three corridors would be created under the plan at four separate ports in Ukraine’s Black Sea city of Odessa and that both Ukrainian and Russian food products would be shipped from there. They said 30-35 million tons of grain were expected to be shipped within 6-8 months.

About 800 Syrian refugees are returning to their country from Turkey every week but conditions are not suitable for voluntary returns, according to Philippe Leclerc, the UN High Commissioner for Refugees (UNHCR) Representative in Turkey. He told Reuters that these Syrians, mostly single people, return to various parts of northern Syria every week but most Syrians believed they would stay in Turkey because their economic conditions are more favorable than in Syria.


The Consumer Confidence Index fell by 6.2% to 63.4 in June, compared to the previous month, according to the Turkish Statistical Institute (TurkStat).


>> FX poured in April and we didn’t even notice

The Central Bank’s (CB) balance of payments statistics show that a considerable amount of foreign exchange (FX) flowed to Turkey in April. Our Eco Analysis Columnist AlaattinAktas says the FX that entered Turkey was more than needed and the surplus added to the CB’s reserves.

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