Page 17 - TURKRptFeb20

Turkey fell 13 places on Transparency International’s latest Corruption Perceptions Index . Of 180 countries assessed, Turkey placed 91st. In the 2018 CPI, Turkey ranked 78th.
2.9 Banking watchdog limits banks’ forex transactions during another rough day for lira
Turkey’s BDDK banking watchdog reportedly said on December 18 that it was limiting banks’ foreign exchange swaps, forwards, options and other derivative transactions with non-residents to a maximum 10% of banks’ legal equity.
The move came as the Turkish lira, impacted by worsening geopolitical rows and some uncertainties over the trajectory of Turkey’s economic recovery, had another rough day losing against the dollar to stand at 5.92.
In a statement cited by Reuters, the BDDK said the limit was set for lira sell side derivative transactions with maturities of seven days or less. It added that transactions made with consolidated credit institutions and partnerships of financial institutions would be excluded when calculating this limit.
In September 2018, Turkey relaxed limits imposed on its banks’ forex swaps and similar instruments, after previously limiting the transactions to 25% of a lender’s equity.
The BDDK also said on December 18 that the limits set out in the September 2018 decision were still applicable.
2.10 Economic crash means three-quarters of Turks now ‘prefer supermarket private labels’
Last year was a rough recession-hit ride for the Turkish shopper and not surprisingly retailers found themselves dealing with far more cautious consumers. It’s a fact of boom-to-bust life that’s been brought home by a Nielsen survey that has shown some 74% of Turkish consumers now prefer private labels at supermarkets.
Strong demand for private labels—generally cheaper than other brands on the shelves—is another indicator that Turks have been struggling to make ends meet and will hope Turkey this year makes a strong recovery from the economic turmoil that has beset the country since the summer 2018 currency crisis.
The survey also showed that 87% of consumers make a point of comparing prices at different supermarkets to find the most affordable items before heading out to shop. That percentage is up from 72% a year ago.
Some 74% of respondents said that they compared private labels’ prices with the prices of other brands.
The market size in Turkey of private label products presently amounts to Turkish lira (TRY) 60bn ($10.2bn), the researchers found. The share of private labels in total products sold at supermarkets grew by 30% in 2019, according to Imer Ozer, head of the Private Label Association of Turkey.
People are increasingly buying private label nappies, dairy products, margarine and vegetable oils, Ozer added. Ozer also noted that private labels accounted for 50% to 70% of all products sold at discount stores whereas the
17 TURKEY Country Report OUTLOOK 2020 www.intellinews.com