What matters this morning

The ruling AK Party elected it’s A-Team at the 7th Grand Ordinary Congress yesterday. The party’s chairman was elected and new Central Decision and Executive Board (MYKY) was formed during the congress held with the ‘confidence and stability for Turkey’ motto. President Recep Tayyip Erdogan, the only candidate, was reelected chairman of the ruling party for the seventh term at the Congress by taking all of 1,428 valid votes. In the meantime, the number of MYKK members increased to 75 from 50 and the number of acting chairmen rose to two. Former and last prime minister as well as former candidate for Istanbul metropolitan mayorship Binali Yildirim became Acting Chairman of the AK Party, while Numan Kurtulmus kept his seat in the same position.

Moreover, President and AK Party Head Recep Tayyip Erdogan announced ‘the 2023’ manifesto and explained the 2053 vision during his speech. Calling on the new constitution, Erdogan stated that they aim to reach the new constitution target in the first quarter of 2022.

Erdogan also gave messages on the economy in his speech. “I want our citizens to bring their foreign exchange and gold at their houses, which are our national wealth, into the economy and production by investing in various financial instruments,” said Erdogan to citizens, stressing that financial institutions, especially participation finance companies offer alternatives for these gold and forex that an provide their customers with a satisfactory return. “Latest fluctuations in the markets don’t reflect the basis, real dynamics, potential and future of the economy,” he said.

Speaking of latest fluctuations, USD/TRY, which climbed 8.47 at the beginning of the week and fell below 8.00 during the week, is balanced between 7.90-8.00. EUR/TRY has a same course at 9.40-9.50. Accordingly, USD/TRY is traded at 7.92 this morning, while EUR/TRY stands at 9.43.

On the other hand, international credit rating agency S&P Global Ratings stated that the recent developments in Turkey can reveal the risks of the country’s balance of payments and that they can undermine the Central Bank’s targets to reduce inflation and to recreate net international reserves.

The sudden dismissal of the Central Bank Governor Naci Agbal following interest increase of 200 base points will be negative in terms of banks’ ratings, according to the report by Moody’s…


The Central Bank will release the summary of the Monetary Policy Committee meeting (2.00 pm).

The Central Bank will also release Financial Services Statistics and Financial Services Confidence Index (2.30 pm).

The Central Bank and the Banking Regulation and Supervision Agency (BDDK) will release weekly money and banking statistics (2.30 pm).

S&P Global Ratings will hold a webinar with analysts from finance institutions to discuss the impact of the recent developments on the country’s credibility (5.00 pm).

The EU Leaders Summit will be held on March 25-26. Vaccines developed against the COVID-19 and the relations between Turkey and the U.S. will be discussed.

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