What matters on Wednesday, March 30

Ukraine proposed adopting neutral status in exchange for security guarantees in 4-hour talks with Russia in Istanbul. This means it would not join military alliances or host military bases, according to Reuters. They also envisage security guarantees along the lines of the NATO military alliance’s Article 5, its collective defense clause. Poland, Israel, Turkey, and Canada could be among the potential security guarantors. Russia, meanwhile, promised to scale down military operations around Kyiv and Chernihiv. “A decision was made to radically, by a large margin, reduce military activity in the Kyiv and Chernihiv directions,” Russian Deputy Defence Minister Alexander Fomin told reporters. He made no mention of other areas that have seen heavy fighting, including Mariupol in the southeast, Sumy and Kharkiv in the east, and Kherson and Mykolaiv in the south.

Foreign Minister Mevlut Cavusoglu hailed the latest round of Russia-Ukraine peace talks in Istanbul, saying the meeting achieved ‘the most meaningful progress since the start of negotiations’. Speaking at a press conference, Cavusoglu also added that he was pleased to see increasing ‘rapprochement’ between the two sides at ‘every stage.’

The Central Bank (CB) held its Ordinary General Assembly meeting yesterday. CB Governor Sahap Kavcioglu emphasized at the meeting that all implementations will focus on the liraization of the financial system to reshape financial stability. Touching on the importance of the high course of producer prices in terms of inflation dynamics, Kavcioglu said the Liraization Strategy is among the most essential elements of the policy review process. He also noted that the impact of geopolitical issues on Turkey’s exports will be limited.

The Turkish Industry and Business Association (TUSIAD) was also held the 52nd Ordinary General Assembly meeting yesterday. Orhan Turhan, Former President of the Turkish Enterprise and Business Confederation (TURKONFED) took over the TUSIAD Presidency from Simone Kaslowski at the meeting. Turhan said they will continue their work for an environment where a competitive market economy, social wealth, and sustainability balance is adopted. Suleyman Sonmez was also appointed the President of TURKONFED.

Turkey and Uzbekistan signed 10 agreements in various fields during President Recep Tayyip Erdogan’s visit to Uzbekistan. President Erdogan said Turkey and Uzbekistan are aiming for a USD 10bn trade volume. “Our trade volume last year increased by nearly 72% to surpass USD 3.6bn,” Erdogan said at a news conference alongside Uzbekistan’s President Shavkat Mirziyoyev. The two parties have promoted their bilateral relations to the Comprehensive Strategic Partnership level as a result of these talks.


The economic confidence index dropped by 2.5% to 95.7 in March, compared to the previous month, according to the Turkish Statistical Institute (TurkStat).

The Parliament will continue do discuss the legislative proposal on the Deputy Election Law and amendment of other laws (2.00 pm).


>> The net profit of Turkey’s banking sector amounted to TRY 39bn in February, according to the Banking Regulation and Supervision Agency (BDDK). The sector’s asset size rose by TRY 267.2bn to TRY 9.48tr in February, compared to the end of 2021.

>> The premium production of the insurance sector rose by 63.4% to TRY 27.35bn in the January-February period, according to the Insurance Association of Turkey (TSB).

>> Some 16,190 new coronavirus cases and 63 deaths due to COVID-19 were reported in the last 24 hours by the Health Ministry.


>> What does an interest rate of 8.6% mean?

The interest rate for the latest bond issuance by the Treasury to the international markets was 8.625%. This rate quadruples the interest rate in the U.S. market. Daily DUNYA Columnist Ismet Ozkul examines the adverse impacts of this rate on Turkey.

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