What matters this morning

The results of revision in short term debt statistics that the Central Bank Governor Sahap Kavciolgu pointed out during his presentation about the 3rd Inflation report last month were released. The data on short-term external debt stock, international investment position, foreign exchange (FX) assets and liabilities of non-financial companies, gross debt stock and balance of payments have been improved following the bank’s revision in three fields. Accordingly, short-term external debt stock, which amounted to USD 144.9bn in May, declined by USD 25.7bn to USD 119.2bn, while the net international investment position deficit, which totaled USD 327.8bn in the same period, dropped by USD 33.6bn to USD 294.2bn. The net FX deficit of non-financial companies also decreased by USD 37bn from USD 168.6bn to USD 131.6bn following the revision. All these revisions had a positive impact while decrease in external debt stock resulted in decline in the bank’s reserve need, which have been on the rise.

Looking at the money market, USD/TRY, which exceeded 8.54 after USD strengthened yesterday, hovers around same levels this morning, while EUR/TRY is traded at 9.98.

Gold prices increase after the delta variant reduced risk appetite although high course despite the pressure of valuated USD. Spot gold surged by 0.34% to USD 1,786 per ounce. Brent crude, meanwhile, also rose by 0.36% to USD 66.69 per barrel.  


President Recep Tayyip Erdogan will receive Japanese Foreign Minister Toshimitsu Motegi (2.15 pm).

Treasury and Finance Minister Lutfi Elvan will convene with the business world in Kocaeli.

The employment index including manufacturing, construction and trade-services sectors rose by 15.7% in the second quarter of the year, compared to the same period of the previous year, according to the Turkish Statistical Institute (TurkStat).

The non-domestic producer price index (ND-PPI) surged by 41.89% in July, compared to the same month of the previous year, according to TurkStat. ND-PPI also rose by 0.34% on a monthly basis.

The agricultural input price index (Agriculture-IPI) increased by 27.65% in June, compared to the same month of the previous year, according to TurkStat. Agriculture-IPI also rose by 2.76% on a monthly basis.

The number of newly established companies dropped by 34% in July, compared to the same month of the previous year, according to the Union of Chambers and Commodity Exchanges of Turkey (TOBB). The number of liquidated firms also decreased by 31.4% in the same period.

The Ministry of Treasury and Finance will announce the central government’s debt stock statics for July (5.30 pm).

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