What matters on Wednesday, September 28

Turkish public banks have decided to exit from the Russian payment system Mir. State-owned Ziraat Bank, Halkbank, and Vakifbank will suspend the usage of Mir. The Mir payment system, which was developed by Russia as an alternative to Visa and Mastercard, was used by Vakif Bank, Ziraat Bank, Is Bank, Denizbank, and Halkbank. Turkish private banks Is Bank and Denizbank left the system first.

The usage of the Mir card is an additional comfort for Russian tourists and a good source of income for Turkish retailers, according to Maya Lomidze, Executive Director of the Association of Tour Operators in Russia (ATOR). Speaking to daily DUNYA, Lomidze said the impact of the suspension of Mir Card usage by Turkish private banks will be limited. She also added that the limitation of Mir card usage won’t affect Russian tourists’ holiday choices and that existing payment systems meet their needs.

President Recep Tayyip Erdogan announced at the AK Party Extended Provincial Presidents meeting that the salaries of all segments, from minimum wage salaries to those of civil servants and retirees, will be raised in the new year to gradually remove the welfare loss caused by inflation.

TRY devaluation has accelerated against the USD after the Central Bank cut the policy rate by 100 basis points for the second consecutive month. USD/TRY broke another record of 18.51 before it declined to 18.48 yesterday. Although TRY devaluation has remained more limited than similar currencies over the last month, hikes have continued for more than a month. TRY has depreciated by nearly 3% against the USD since the first rate cut in September, while it has devaluated by 20% since the end of April, 28.6% since the beginning of the year, and 54.6% over the last year. USD/TRY is traded at 18.50 this morning.

Meanwhile, Turkey’s benchmark stock index ended yesterday at 3,265.64 points, up 0.17% or 5.49 points from Monday’s close. The index’s lowest value during the day was 3,256.46, points, while its daily high was 3,319.14 points. The total market value of the BIST 100 was around TRY 2.6trby market close, with a daily trading volume of TRY 63.1bn. Global markets have begun to seek guidance after central banks aggressively increased interest rates and aent the message that the high-interest rate environment will continue for a while, according to analysts. Stressing that balance seeking may continue in the markets, analysts said 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.

DAILY AGENDA

No important data will be released in the country today. 

Meanwhile…

>> The number of enterprises operating in the financial intermediary institutions’ sector totaled 19,001 in 2021, according to the Turkish Statistical Institute. Their value-added at factor costs amounted to TRY 436.09bn while their production value totaled TRY 592.01bn last year.

>> Turkey ranks 16th in the world for highest food waste per capita, according to the 2021 Food Waste Index report prepared by the United Nations. 93 kilograms of food are wasted per person every year in Turkey.

>> Sabanci Holding’s banking subsidiary, Akbank, provided a USD 50m syndication loan from the European Bank for Reconstruction and Development (EBRD) to support female enterprises.

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