What matters this morning

Economic Coordination Council, which took effect with a presidential decree published in the Official Gazette, convened for the first time under the presidency of Vice President Fuat Oktay. The Council discussed the current economic status in detail, evaluated enactment process of the economic reforms, necessary steps to be rapidly taken in the short term and policies to be implemented in the medium and long term, according to Oktay. The national economy grew by 7% in the first quarter (Q1) by the support of measures taken in time against the COVID-19 and the growth rate will exceed this figure in Q2, he said. Oktay said the country’s exports would exceed $200 billion at the end of the year, with a target of $210 billion

“We forecast positive developments in current account deficit and inflation as a result of measures in the second half of the year,” he added. The Medium-Term Program for 2022-2024 would be released in the first half of September Oktay heralded. The council will convene each month to analyze the Turkish and global economies, economic stability, development and will strengthen coordination between institutions.

On the other hand, the collective labor agreement for 2022-2023 on civil servants which was negotiated between the Ministry of Labor and Social Security and trade unions, has been announced. The wages will be raised by 5% + inflation compensation in the first half (H1) of 2022, and by 7%+ inflation compensation in H2 2022, which is lower than unions demanded.

In terms of daily developments, USD/TRY, which started the week at 8.46-8.47 fell to 8.42 after USD index dropped below 93 yesterday, hovers around 8.41-8.43 this morning. EUR/TRY is traded at just above 9.88.

Oil prices, which showed an upward trend after they decreased for seven successive days, continue to rise as the U.S. administration approved the Pfizer-BioNTech vaccine that will pave the way for inoculation to increase in the country and oil demand to follow this. Brent crude, which surged by 4% yesterday, continued to climb 0.68% to USD 69.22 per barrel this morning. Gold prices, meanwhile, slightly fell to USD 1,802 this morning, after they saw 1.4% increase yesterday.


The Central Bank will release the Financial Services Confidence Index for August (2.30 pm). The index reached 164.2 points in July.

Leave a Reply

Your email address will not be published.