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Manufacturing PMI Shows Sector Contracting for Sixth Consecutive Month

TURKEY
  • In a further Liraization tweak, the Turkish central bank clarify that they are to charge a 3% commission on FX reserve requirements for banks whose TRY deposits make up less than 50% of all deposits.
  • Manufacturing PMI data came in at 47.4 (Prev. 46.9), extending the run of contraction for the manufacturing sector to six consecutive months. The report cites another sharp contraction in demand, with new orders slowing at the sharpest rate since May 2020.
  • Late yesterday, energy market regulator EPDK and state-run energy importer BOTAS announced plans to increase household electricity and gas prices by 20% and 20.4% respectively. Gas prices for industry, however, will rise by 50.8%. Note in June electricity distributors met to arrange plans to gradually increase prices through 2022 rather than to risk protests with a single, large hike.
  • President Erdogan will speak at a ceremony at 1200 BST (1400 local time) before chairing the AK party’s central management committee meeting at 1500 BST (1700 local time).

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