The Minimum Wage Determination Commission, where the minimum wage for next year will be determined, will hold its first meeting today under the chairmanship of Minister of Labor Vedat Işıkhan. The General Assembly of the Turkish Grand National Assembly will begin discussions on the 2024 budget proposal today.
In addition, the Treasury will re-issue five-year fixed coupon and seven-year variable bonds.
On the internal data agenda, the balance of payments, labor force statistics and industrial production index for October, which will be published at 10.00 today, will be followed.
According to the Reuters survey, the current account balance is expected to have a surplus of 750 million dollars in October, while the current account deficit expectation for the whole of 2023 is at 45.4 billion dollars.
Asian stock markets started the week on a downward note when the Fed announced its monetary policy decision.
Investors will monitor the policy decisions to be announced by the four major central banks, as well as the Fed, and inflation data, which will have an impact on expectations of when interest rate cuts in the US will begin.
Banks and the Central Bank (CBRT) met last week. The transition process to TL, the continuation of the healthy functioning of the credit flow compatible with the disinflation target, the development of the positive course in export and investment credits together with the CBRT, and joint work on the Social Investment Rating were discussed.
The Financial Stability Committee also met on Friday last week. At the meeting, it was stated that efforts will be continued with a holistic approach in order to preserve financial stability, one of the important elements of sustainable high growth.
Minister of Treasury and Finance Mehmet Simsek with CBRT President Hafize Gaye Erkan They will attend investor meetings in Spain on December 14-15. Erkan will also meet with DEIK today and TIM this week.
CBRT’s total reserves broke a record by exceeding 140 billion dollars in the week ending December 1. There has been an increase of 41.7 billion dollars in total reserves since the elections, including 17.95 billion dollars in the last 10 weeks.
The stock portfolio of non-residents increased by 376.4 million dollars in the week of December 1, and the government securities portfolio increased by 152.2 million dollars. The expectation that inflows would accelerate next year caused a 500 basis point decrease in the 10-year benchmark bond yield during the Treasury auctions period, although not entirely permanently.
Dollar/TL has followed a trend of limited daily increases since the beginning of September. This trend in the exchange rate has slowed down since the beginning of December, with the support of the beginning of foreign fund flows, but it continues.
TL LOST VALUE BY 35.4 PERCENT
Although TL has shown limited change against the dollar recently, it has lost 35.4 percent of its value since the beginning of the year. The loss of value in TL since June, when public control over the exchange rate was loosened, has been 28.5 percent.
Euro TL is traded at 31.36.
TREASURY BORROWING WILL INCREASE SIGNIFICANTLY IN JANUARY AND FEBRUARY
The Treasury will borrow money today through two auctions with five and seven year maturities. The borrowing amounts of the Treasury, which borrowed approximately 53 billion TL with the three auctions held last week, will increase significantly next year.
Although the Treasury has currently borrowed more than its 45 billion TL borrowing target in December, it predicted high amounts of borrowing such as 121 billion TL in January and 266.8 billion TL in February. In this context, the interest of foreign investors in tenders is important for the market.
According to Treasury data, the share of foreign investors, which broke a record by reaching 28 percent of the TL-denominated domestic debt stock 10 years ago, is still below 1 percent, according to the current data from a few months back. In this context, foreign interest in tenders is closely monitored in the markets.