Erta Audit
Bulletin
October 12, 2026
Weekly Economic Bulletin 05.10.2026 - 09.10.2026
ISSUE 2026/10
Period: October 5–9, 2026 (Monday–Friday) · Market close: Friday, October 9, 2026
Inflation
September CPI was 1.84% month-on-month and 29.73% year-on-year; Domestic PPI (D-PPI) was 2.07% month-on-month and 27.38% year-on-year. Food prices fell 0.20% month-on-month, while housing rose 2.71%, transportation 2.79%, and education 14.19%. The BloombergHT survey had expected 2.20% monthly and 30.30% annual inflation.
Reserves and foreign investor flows
The CBRT’s gross reserves fell by USD 3.8 billion to USD 167.4 billion in the week of October 2, while net reserves excluding swaps declined to USD 37.9 billion. Non-residents recorded net equity sales of USD 189.9 million; net bond sales were approximately USD 0.5 billion. FX deposits adjusted for parity effects increased by USD 851 million.
Real sector and banking
Industrial production declined by 1.0% month-on-month and 1.9% year-on-year in August. According to BRSA data, loans increased by TRY 240.0 billion in the week of October 2, while deposits decreased by TRY 310.6 billion; non-performing loans rose by TRY 26.8 billion to TRY 914.6 billion.
Public finances and funds
The Treasury cash balance posted a TRY 467.2 billion deficit in September (versus a TRY 49.8 billion surplus in August). According to reports dated October 9, a legislative proposal concerning investment funds that had been ordered into liquidation is being submitted to the Grand National Assembly of Türkiye (GNAT); a TRY 1 million cap is envisaged for interim payments.
USD/TRY
49.3435
▲ +0.40%
Previous Friday: 49.1475
EUR/TRY
55.2414
▼ −0.23%
Previous Friday: 55.3669
BIST 100
12,253.16
▼ −0.14%
Previous Friday: 12,270.18
CBRT policy rate
37.00%
━ Unchanged
September 10 MPC decision
Gram gold (TRY)
6,639.49
▲ +1.36%
Previous Friday: 6,550.69
CBRT gross reserves (USD bn)
167.4
▼ −2.2%
Week of October 2; previous (week of September 25): 171.2
▲ indicator increased · ▼ indicator decreased · ━ unchanged. Green = increase, red = decrease, gray = unchanged.
Source note. USD/TRY and EUR/TRY are selling prices from the BloombergHT market summary (not CBRT indicative exchange rates); BIST 100 and gram-gold values are from the same summary. Measurements relate to the evening sessions of October 2 and 9 (around 18:30 Türkiye time); each market uses its own closing and measurement time. The policy rate is unchanged; there was no MPC meeting this week, and the next meeting is on October 22, 2026. The reserve figure is the CBRT data for the week of October 2, released on October 8; data for the week of October 9 will be released on October 15. Components of gross reserves: gross FX reserves USD 60.3 billion (−1.24), gold reserves USD 107.1 billion (−2.58); the sum of component changes (3.82) differs from the total change (3.8) due to rounding.
September CPI, released on October 5, was 1.84% month-on-month, 29.73% year-on-year, and 24.32% year-to-date; the 12-month average was 31.49%. Domestic PPI (D-PPI) was 2.07% month-on-month (August: 2.57%) and 27.38% year-on-year; manufacturing prices rose 2.32% monthly and 29.09% annually, while energy increased 3.55% monthly. Among the main expenditure groups, food fell 0.20% month-on-month, while transportation rose 2.79%, housing 2.71%, and education 14.19%.
In the September real-return data released on October 8, Government Domestic Debt Securities (GDDS) delivered the highest monthly real return: 1.18% based on D-PPI and 1.40% based on CPI. The real return on gross deposits was 0.96% based on D-PPI and 1.19% based on CPI.
Industrial production for August, released on October 9, declined by 1.0% month-on-month (July: −0.9%) and 1.9% year-on-year (July: −0.2%); according to BloombergHT, this was the fourth consecutive monthly decline. On an annual basis, manufacturing fell 2.5%, while mining rose 1.7% and electricity-gas increased 1.3%. On the same day, the Construction Cost Index rose by 2.04% month-on-month and 29.59% year-on-year in August; materials increased 28.72% annually and labour 31.20%.
Commentary. In September, annual CPI (29.73%) was 2.35 percentage points above annual D-PPI (27.38%), while monthly D-PPI (2.07%) was 0.23 percentage points above monthly CPI (1.84%). In August, industrial production declined 1.0% month-on-month while the Construction Cost Index rose 2.04% month-on-month; the contraction in output volume and the increase in input costs occurred in the same period.
According to the CBRT’s data for the week of October 2, released on October 8, gross reserves declined from USD 171.2 billion to USD 167.4 billion (−3.8); USD 2.58 billion of the decline came from gold and USD 1.24 billion from foreign-exchange reserves. Net reserves stood at USD 53.8 billion (+0.4), while net reserves excluding swaps were USD 37.9 billion (−2.0). FX deposits adjusted for parity effects increased by USD 423 million for individuals and USD 428 million for corporates, for a total increase of USD 851 million.
In the Securities Statistics, non-residents recorded net equity sales of USD 189.9 million in the week of October 2 (previous week: net purchases of USD 358.6 million); net bond sales were approximately USD 0.5 billion.
According to BRSA weekly data dated October 2, total loans were TRY 28,642.3 billion (weekly +240.0), while total deposits were TRY 32,364.7 billion (weekly −310.6). Consumer loans were TRY 3,502.0 billion (housing 842.5, vehicle 42.1, personal 2,617.3); credit-card receivables were TRY 3,533.6 billion (installment 1,331.3, non-installment 2,202.2). Non-performing loans stood at TRY 914.6 billion (+26.8), and specific provisions at TRY 679.2 billion.
Commentary. In the week when loans increased and deposits declined, the total loans-to-total deposits ratio rose from 86.9% to 88.5%. The weekly increase in non-performing loans was 3.0%; the ratio of specific provisions to non-performing loans stood at 74.3%.
On October 5, the Treasury borrowed through a 2-year bond with a 707-day maturity (18% coupon) at a simple yield of 36.53% and a compound yield of 39.87%; and through a 5-year bond with a 1,652-day maturity (16.63% coupon) at a simple yield of 35.55% and a compound yield of 38.71%. On October 6, an 8-year fixed-coupon bond (13.85% coupon) was issued at a simple yield of 33.59% and a compound yield of 36.40%; a 4-year TLREF-indexed bond was also sold on the same day.
In the September Treasury cash balance released on October 7, cash revenues were TRY 1,331.1 billion, cash expenditures TRY 1,798.3 billion, and the cash deficit TRY 467.2 billion (versus a TRY 49.8 billion surplus in August). Primary expenditures were TRY 1,524.4 billion, interest payments TRY 273.9 billion, and the primary deficit TRY 193.3 billion.
In the Capital Markets Board of Türkiye (CMB) Weekly Bulletin No. 2026/69 dated October 7, 21 individuals were banned from trading for two years as part of the ODINE investigation; all licenses of 15 individuals were revoked, and criminal complaints were decided to be filed against 21 individuals under Article 107/1 of the Capital Markets Law. The bulletin contained no public-offering approval or administrative monetary penalty.
Commentary. The simple yield on the 2-year bond auctioned on October 5 (36.53%) was 0.98 percentage points above the simple yield on the 5-year bond (35.55%); the 8-year bond on October 6 was sold at a lower simple yield of 33.59%. Approximately 41% of the September cash deficit consisted of the primary deficit (TRY 193.3 billion), with the remainder consisting of interest payments (TRY 273.9 billion).
Scope note. The Official Gazette issues dated October 6–9, 2026 contained no changes in tax, fee, SCT or VAT rates; no communiqués under the Tax Procedure Law, Corporate Tax Law, Income Tax Law, VAT Law, SCT Law or fees legislation; and no regulations issued by the Public Oversight Authority, Social Security Institution, BRSA, CMB or CBRT. Two regulations did, however, appear in the same issues: an amendment on October 7 to the Regulation on Measures Regarding Prevention of Laundering Proceeds of Crime and Financing of Terrorism (according to BloombergHT, the customer-identification threshold for cash, foreign-exchange and jewellery transactions was raised from TRY 185,000 to TRY 370,000, while the threshold for electronic transfers and simplified measures was raised from TRY 15,000 to TRY 30,000), and an amendment on October 9 to the Ministry of Trade Communiqué on Import Surveillance (2022/1), bringing certain rice and paddy products within the registration requirement; the latter is not a tax regulation.
According to the CBRT’s Securities Statistics dated October 8, non-residents were net sellers of USD 189.9 million in equities in the week of October 2; in the previous week, they had recorded net purchases of USD 358.6 million. Net bond sales were approximately USD 0.5 billion and, according to BloombergHT, bond sales continued for a third consecutive week.
In its October 7 bulletin, the CMB approved for Akbank an issuance ceiling of TRY 30 billion for structured debt instruments, TRY 100 billion for bonds/bills, and USD 4 billion for green debt instruments to be issued abroad; ceilings of TRY 15.15 billion for İş Faktoring and TRY 5 billion for QNB were also set. Galata Menkul’s capital was increased from TRY 70 million to TRY 200 million.
According to reports dated October 9, a legislative proposal concerning the funds that the CMB decided to liquidate on September 17, 2026 is being submitted to the Grand National Assembly of Türkiye (GNAT). Under the proposal, the Central Securities Depository of Türkiye (MKK) will calculate each investor’s net investment amount by indexing cash inflows and outflows to the average of CPI and D-PPI and applying the first-in, first-out (FIFO) method. Interim payments will be capped at TRY 1 million; interim payments will not be indexed to inflation.
Under the proposal, the Savings Deposit Insurance Fund (SDIF) may be appointed as trustee for seized assets that cannot be returned to the fund and may sell them without waiting for the outcome of court proceedings; proceeds will be held in a separate recovery account on a fund-by-fund basis. Primary responsibility will rest with the portfolio management company and, if that proves insufficient, with persons to be determined by the CMB.
According to MKK data, foreign investors’ fund portfolios declined from USD 11.1 billion at the end of August to USD 5.0 billion at the end of September (−USD 6.1 billion); total fund size fell from TRY 11 trillion to TRY 9.5 trillion.
Commentary. Under the proposal, interim payments are capped at TRY 1 million and are not indexed to inflation; the final amount, however, will be determined based on the net investment amount indexed to the average of CPI and D-PPI. The TRY 1.5 trillion decline in total fund size cannot be attributed to a single cause without separating market-value movements from investor outflows.
The following assessments are my personal views as a Sworn-in CPA in light of this week’s data.
Treasury yields serve as a market benchmark; a company’s actual financing cost varies according to the bank risk premium, commissions, collateral and maturity. I believe it is important to monitor monthly the ratio of financing expenses to operating profit and the maturity structure of debt.
A 3% weekly increase in non-performing loans in the banking sector does not, by itself, justify a sector-wide conclusion; however, when assessed together with the decline in industrial production, I believe it is useful to review receivables ageing and concentration among major customers. The ratio of receivables overdue by more than 90 days to total receivables is a simple early-warning indicator.
Annual increases of 27.4% in producer prices and 29.6% in construction costs may create margin pressure, particularly under fixed-price contracts. I recommend assessing both the ability to pass costs through to sales prices and the financial resilience of critical suppliers, while keeping alternative sourcing options available.
During periods when pricing, discounts, foreign-exchange differences and maturity differences change frequently, consistency among contracts, invoices and accounting records is important in terms of the VAT base and documentation of expenses. I believe timely review of period-end price adjustments and foreign-exchange difference entries will reduce disputes.
SENTENCE OF THE WEEK
“Inflation distorts not the numbers on the balance sheet, but what those numbers mean relative to one another.”
This bulletin is for general information purposes only and does not constitute investment advice or regulatory advisory services. The data have been compiled from the official and secondary sources specified above and reflect information available as of the publication date.
Muhsin GÜNYELİ
Sworn-in CPA · Independent Audit Partner