What matters this morning

The government aims to raise employment by 1.1 million people annually on the average as part of the Medium-Term Economic Program (OVP) and the unemployment rate will gradually decrease, according to President Recep Tayyip Erdogan. Speaking at a press conference held after the cabinet meeting yesterday, President Erdogan said they project an economic growth of 9% this year, and the national income will exceed USD 800bn in 2021 and reach TRY 1tr by the end of the OVP period. “We’ll establish a growth structure that creates qualified employment, doesn’t produce current account deficit and looks after fair distribution of income. We’ll encourage foreign direct investments and high-technology fixed capital investments in the manufacturing industry,” he noted.

President Erdogan also highlighted that they aim the inflation to permanently fall to a single-digit figures within the scope of the OVP. The 5% inflation target set with the government and marked the Central Bank’s inflation projections hasn’t been included in the new OVP this time. Accordingly, the 3-year program’s inflation targets have been set as 16.2% for this year, 9.8% for 2022 and 8% for 2023 and 7.6% for 2024.

The economy world has interpreted the inflation targets of the new OVP more realistic than previous projections, but they are still optimistic, according to analysts, who think that 9.8% inflation target for 2022 seems impossible.

Money market’s reaction to the new OVP was positive. USD/TRY achieved to remain below 8.30 yesterday and hovers around 8.27-8.28 this morning. EUR/TRY meanwhile is traded at 9.84.

Gold prices approach to the peak levels in the recent period by the support of expectations that the Federal Reserve will postpone its bond tapering plan.  Spot gold reaches USD 1,819 per ounce this morning.

Oil prices fluctuate due to demand concerns after Saudi Arabia reduced oil prices it exports to Asian countries. Brent crude increased by 0.46% to USD 72.59 per barrel.


The highest stock exchange yielded monthly real profits were 3.98% in accordance with the Consumer Price Index (CPI) and 2.31% in line with the Domestic Producer Price Index (D-PPI) in August, according to the Turkish Statistical Institute (TurkStat).

The Ministry of Treasury and Finance will issue 5-year (1,820 days) maturity semiannually fixed coupon bond and reissue 10-year (3,549 days) maturity semiannually CPI Indexed government bond.

The Ministry of Treasury and Finance will release cash realization figures for August (5.30 pm).

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