Turkish Press Digest - Oct 22, 2022

According to the data announced by Turkstat, consumer confidence reached its highest level in 2022. The consumer confidence index increased by 5.3% compared to the previous month and became 76.2 in October – BloombergHT

The Central Bank of the Republic of Turkey (CBRT) lowered the policy rate by 150 basis points to 10.50%. The market expectation was to cut the interest rate by 100 basis points. The CBRT signaled in its decision text that a similar rate cut would be made in November and that the interest rate cycle would be completed – BloombergHT

Following the Central Bank's rate cut, the BRSA took a new macroprudential measure to tighten the loan market. For companies that can use loans, the FX position limit, which was 15 million TL before, was reduced to 10 million TL. The credit limit applied to companies whose "cash position exceeds 10%, whichever is greater than total assets or 1-year net sales revenue", has been updated to 5% – Dünya

According to the Housing Sale Market Outlook October 2022 note prepared by BETAM, the annual rate of increase in prices across the country decreased by 1.9 points compared to the previous month. Thus, this rate decreased for the first time after July 2021. According to the report, the annual rate of price increase in Istanbul in September decreased by 9.4 points compared to the previous month. Compared to the previous month, the number of ads for sale increased by 2.8%, while the number of houses sold decreased by 14.0% – BloombergHT

According to the housing price index of the Central Bank of the Republic of Turkey (CBRT) for August, prices increased by 185% compared to the same period of the previous year. Housing prices in Istanbul increased by 211% in the same period – BloombergHT

It was stated that Iranian Oil Minister Javad Owji came to Turkey for gas talks and met with Energy and Natural Resources Minister Fatih Dönmez, Treasury and Finance Minister Nureddin Nebati, and Central Bank Governor Şahap Kavcıoğlu. According to the news, the meeting discussed the renewal of the contract for the export of Iranian gas to Turkey, which will expire in 2026 [A significant number of the long-term natural gas contracts of Turkey are going to be expiring until 2026 – GC] – BloombergHT

Speaking about the reaction of the US to the decision of the OPEC and OPEC+ group to reduce daily oil production as of November, Foreign Minister Mevlüt Çavuşoğlu said, "If you want prices to fall, lift the embargoes on the countries that will offer products to the market." – BloombergHT

Presidential Spokesperson İbrahim Kalın stated that the negotiations regarding the postponement of the Russian gas payments of BOTAŞ to 2024 are continuing – BloombergHT

Aleksey Likhachev, General Director of the Russian State Atomic Energy Agency Rosatom, announced that they have started negotiations with Turkey on the construction of a nuclear power plant in Sinop [Sinop Nuclear Power Station was going to be built by a French-Japanese consortium, but the consortium left the project because of the rapid rise in the cost, according to them – GC] – NTV

The Ministry of Commerce announced that the regulation to monitor the number of mobile phones brought by passengers from abroad over a 3-year period and to prevent passengers from bringing more than one phone in 3 years beyond their exemption rights will be put into effect on 1 November [Turkey wants to discourage imported phone and especially iPhone usage, and Turkey has the highest USD price for iPhones on earth, but people purchasing iPhones abroad during their trips and bringing them back to Turkey for their own use or to sell them was an obstacle in that regard – GC] – Dünya

Speaking at the 'Blockchain Istanbul' summit held at Istanbul University, President Recep Tayyip Erdoğan said that a study on crypto money is being carried out within the body of the Central Bank. "We are trying to establish our own universe instead of trying to take place in virtual universes opened by others," said Erdogan. [President Erdogan is probably talking about the Central Bank Digital Currency project of the CBRT, which has been ongoing for a couple of years now and is expected to be finalized in the next year or two - GC] – BloombergHT

As of the week of October 14, foreign investors made net sales of 169 million dollars in stocks and 17 million dollars in bonds. With the latest data, the total portfolio outflows in 2022 were 5.8 billion dollars – NTV

Referring to the talks he had with Ukrainian President Zelenskiy and Russian President Vladimir Putin, President Recep Tayyip Erdoğan stated that there is no obstacle to the extension of the grain corridor agreement – BloombergHT

President Erdoğan said, "The normalization processes between Azerbaijan-Armenia and Turkey-Armenia are progressing in a way that supports each other, this opportunity should be used in the best way possible" - BloombergHT

The reserves of the Central Bank of the Republic of Turkey are at the highest level of the year with 116 billion dollars - NTV

According to the data announced by Turkstat, the Agricultural Input Price Index increased by 1.64% monthly, and 135.06% annually in August (a historically high annual increase). The sub-group with the highest annual increase was the fertilizer and soil improvers group with an increase of 234.48%. The subgroup with the highest monthly increase was the seed and planting material group with an increase of 9.62% - TRT Haber

According to the data announced by Turkstat, producer prices in agricultural products increased by 7% monthly, and 156% annually – NTV

Turkey's automotive production in September increased by 20.5% compared to the same month of the previous year and reached 128,872 units. In September last year, the production was 106 thousand 988 units - BloombergHT

Cengiz Eroldu, President of the Automotive Industry Association (OSD), stated that the automotive companies having facilities in the Far East production centers want to move to Turkey. Eroldu underlined the Italian companies specifically - BloombergHT