Turkish Central Bank to form three new divisions, says officials

ANKARA

The Turkish Central Bank has decided to establish three new divisions in a bid to adapt its organizational structure to its priorities, according to a statement issued by officials on Feb. 4. 

Under its Structural Economic Research Department, the bank will form a division in charge of analyzing developments in the food and agricultural product markets.

This division will “perform an early warning function by carrying out a detailed and timely analysis of data regarding the prices of food and agricultural products that are critical to price stability,” officials said.

Food prices rose another 2.5 percent last month and more than 18 percent in a year, the Turkish Statistical Institute revealed on Feb. 3.

Turkish inflation has been stuck in double digits for most of the last three years, well above the medium-term target of 5 percent.

In its first inflation report this year, the Central Bank last week reaffirmed its determination to bring down the annual consumer prices index from around 15 percent last month to below 10 percent by the end of the year.

Last week, the Food and Agricultural Product Markets Monitoring and Evaluation Committee, including finance, agriculture and trade ministers as well as Central Bank governor Naci Ağbal, convened to take measures to stem the rapid rise of food prices.

The new division will also fulfill secretarial duties for the committee, officials said.

The Central Bank will also establish a participation banking division under the Banking and Financial Institutions Department.

In the last two decades, Turkey has positioned itself to be a hub for participation in banking and Islamic finance.

The ongoing project of the Istanbul Finance Center, which will also host non-banking institutions, is expected to be completed by the second half of the next year.

The Central Bank has also decided to set up a financial control division under the Budget and Financial Reporting Department in a bid “to increase the reliability of financial reporting and control whether expenditures under the budget are in line with the bank’s priorities.”