2.11 International Cooperation and Events

2.11.1 Relations with International Organizations

The CBRT hosted the fifth meeting of the “OIC-COMCEC Central Banks Forum”, for which the CBRT carries out secretarial activities, on 24-25 September 2023 in Istanbul. The first session of the meeting focused on the global economic outlook and the economic outlook of OIC member countries. In this context, opportunities, risks and policy recommendations in the global economy were evaluated, and the economic and financial developments facing the central banks of participating countries were discussed. The second session discussed recent developments in the design and use of central bank digital currencies and assessed the role of cooperation among central banks in this regard. Moreover, the advantages and disadvantages of central bank digital currencies were discussed in this session. In this context, participants shared their experiences about central bank digital currencies and the CBRT provided information on the Digital Turkish Lira Project. In the third session of the Forum, the growing importance of trade in local currencies at the global level was discussed. While proposing ways to enhance trade in local currencies, participants also identified priority areas and the steps to be taken in order to make progress in this regard.

In the scope of the “COMCEC Project Funding”, a project bearing the title “Unleashing the Potential of Islamic Finance in Supporting MSMEs in the OIC Member Countries”, which was conducted by the SESRIC, was jointly carried out by the CBRT, Bank Indonesia, Bank Negara Malaysia and the SaudiCentral Bank. As part of the project, a workshop on “Promoting Islamic Social Finance and Accelerating the Growth of Halal Value Chain Ecosystem” was hosted by the Bank Negara Malaysia in Kuala Lumpur on 20-21 September 2023. As part of the training leg of the project, the CBRT contributed to the three-day training program on “Leveraging Key Stakeholders towards Inclusive and Sustainable Development of MSMEs”.

The CBRT carried out work for periodic meetings organized by the G20, IMF and BIS, and in this context, coordination was established with internal and external stakeholders. In addition, within the framework of the routine IMF Article IV negotiations, the Bank participated in the meetings coordinated by the Ministry of Treasury and Finance in September and contributed to agenda items. During these meetings, the IMF delegation was briefed on the current state of the Turkish economy and financial sector as well as the CBRT’s monetary policy implementations.

The CBRT held meetings with the European Bank for Reconstruction and Development (EBRD) on 17 July 2023, 23 November 2023 and 7 December 2023 to exchange information on the global outlook, Türkiye’s economic situation and investment opportunities, in coordination with internal and external stakeholders.

In 2023, the CBRT participated as an observer member in the mBridge Project launched by the BIS Innovation Hub, the Hong Kong Monetary Authority, the Central Bank of the United Arab Emirates, the People’s Bank of China and the Bank of Thailand to explore the use of digital currencies in cross-border payments.

The Implementation Monitoring Standing Group (IMSG) established by the Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions (CPMI-IOSCO) launched a study called “Level 2 Assessment” in 2020, which also included Türkiye. In the scope of the study, the Assessment Team, which included participants from many countries, conducted an assessment of the compliance of payment and securities settlement systems under the CBRT’s jurisdiction with the Principles for Financial Market Infrastructures (PFMI) published by the CPMI and IOSCO, and the resulting report was published in July 2022. Despite some recommendations presented in the Second Level Assessment, the regulations on payment and securities settlement systems under the CBRT’s regulatory and oversight authority were assessed to be “Fully Compliant” with the PFMI.

2.11.2 Participation in International Events

The CBRT attended online the General Assembly Meeting of the Central Bank Counterfeit Deterrence Group (CBCDG) held on 7 December 2023 as a member. CBCDG General Assembly Meetings are held once a year and in these meetings, the heads of delegations from member countries of the European Banknote Conference and representatives of other member countries not included in the European Banknote Conference are informed about the activities of the CBCDG by the management, necessary decisions are taken and the CBCDG budget is approved.

The CBRT participated online in various sustainability-themed meetings organized by institutions such as Reconnaissance International Ltd. and the International Association of Currency Affairs (IACA) on 5 April 2023, 26 April 2023, 11 July 2023 and 1 November 2023.

The CBRT participated online in the “The Holography Conference” regarding banknote production organized by Reconnaissance International Ltd. between 21-22 November 2023.

Similarly, the CBRT participated online in the meetings of the sub-working groups of the Customer Focus Group-CFG attended by representatives of the banknote printing houses using the machines manufactured by the Koenig&Bauer Banknote Solutions company.

The CBRT participated in the “CBDC Conference 2023” event organized in Istanbul between 12-14 September 2023. The conference, which was attended by many central banks, technology companies and international organizations carrying out activities on digital currencies around the world, staged presentations and panels on various topics such as the objectives, requirements, design preferences and implications of possible issuance of digital currencies.

The CBRT is a member of the “Technical Advisory Group of Central Banks of Countries Using Banknote Processing Systems”. The Group has been working on a number of issues such as determining the technical details of new features that can be developed in banknote processing systems, ensuring technical communication between member countries and the system manufacturer, eliminating problems and producing solutions for the common benefit of member countries. In the scope of these studies, the Issue Department participated in the 52nd Technical Advisory Group meeting organized by the Czech National Bank in Prague between 3-5 April 2023.

The Issue Department participated in the Istanbul Fintech Week 2023 organized by Fintech Association Türkiye (FINTR) and OKX IT Services and IT Consulting on 13-14 April 2023. The program, which is organized under two main headings as Blockchain Fest and Digital Finance Summit, creates a platform for global discussion and information exchange in the changing financial services sector.

The CBRT is a member of the Cash Issuance Committee, one of the technical sub-units of the European Banknote Conference, which operates with the participation of central banks and banknote printers of European countries for banknote printing and cash management. As part of these activities, the Issue Department participated in the 2023 meeting hosted by the Swiss National Bank in Zurich between 18-20 April 2023.

The Issue Department participated in the annual meeting of the BPS International Users Group, of which the CBRT is a member, held on 11-14 July 2023, in Düsseldorf-Dortmund, Germany. At the annual meeting, representatives from central banks of member countries using the said systems and the manufacturer of the banknote processing systems discussed the development of banknote processing systems, the ways in which they are integrated into teller operations, innovations in operating practices and experiences arising from their use and sought to find common solutions to problems.

The Conference on “Cash Management Strategies, Recent Technological Developments and New Products”, organized every two years by the Intergraf Currency+Identity organization and attended by central banks, banks operating in the sector, cash service companies and more than 100 companies providing raw materials/products, was held in Spain between 17-20 October 2023. In the event, which was attended by the Issue Department on behalf of the Bank, sessions were organized on topics such as developments in cash usage worldwide, new security features, sustainability in the cash cycle and central bank digital currency applications, and the CBRT delegation made presentations and participated in panels.

The conference bearing the title “The Future of Cash”, organized by Reconnaissance International in Türkiye between 6-8 November 2023, was attended by central banks of other countries, other stakeholders operating in the cash cycle and the Issue Department and the Banknote Printing Plant on behalf of Türkiye. The conference staged sessions on topics such as the future of cash, and key indicators, challenges and solutions in cash management. The CBRT made an opening presentation and introduction and answered the questions of the participants in the panel.

The CBRT participated online in the annual committee meeting of the BIS Irving Fisher Committee on Central Bank Statistics as a member.

The CBRT participated in the “Meeting of the Working Party on Financial Statistics (WPFS)” and “Conference on National Economic and Financial Accounts (CNEFA)” organized by the Organization for Economic Cooperation and Development (OECD). The CBRT representative chaired sessions on “Climate-Related Risks and Sustainable Finance” and “Globalization, MNEs and International Investment Flows”.

The CBRT participated in and contributed to the online meeting of the “Working Group on International Investment Statistics (WGIIS)” held on 26-27 July 2023 within the framework of our bureau membership at the OECD.

As a bureau member of the OECD, the CBRT participated in and contributed to the “Working Group on Statistics of International Trade in Goods and Services (WPTGS)” meeting held online between 11-13 October 2023.

The CBRT participated in the “Financial Statistics” training organized by the Center of Excellence in Finance (CEF) in Slovenia.

The CBRT participated in and contributed to the online meetings of the “Balance of Payments Working Group (BOP WG)” held by EUROSTAT between the member and candidate countries of the European Union on 20-22 November 2023 and the online meeting of the “International Trade in Services Statistics Working Group (ITSS WG)” held on 16-17 November 2023.

The CBRT participated online and contributed to the “11th Meeting of the Travel Workshop Relating to International Trade in Services Statistics” organized by the Bank of Italy on 13-14 November 2023.

As part of the BIS 2025 Innovation Strategy, the CBRT participated in the online meetings of the “BIS Group of Experts” working group as a member. The working group was established with the aim of reshaping the technical infrastructure of the BIS Data Bank and creating a new data distribution platform. In addition, the CBRT participated in the “Fusion Metadata Registry” meeting organized by the BIS to improve data reporting formats and processes.

The CBRT participated in the annual evaluation meeting on tendency surveys conducted by the European Commission under the Joint Harmonised European Union Programme of Business and Consumer Surveys.

The CBRT participated in the “BIS Data Portal Alpha Testing” meeting, where the new data portal being developed by the BIS was introduced and feedback was collected on the content and use of the portal.

The CBRT participated online in the meetings of the “G20 Data Gaps Initiative (DGI)” coordinated by the IMF. Contributions were made to the sub-working groups on “Data Sharing” and “Access to Private and Administrative Records” in the ongoing 3rd phase.

The CBRT participated online in the meetings of the International Network for Exchanging Experience on Statistical Handling of Granular Data (INEXDA) coordinated by the European Central Bank.

The CBRT participated in the 20th Meeting of the COMCEC Financial Cooperation Working Group on “Enhancing Cooperation among Central Banks with Respect to Digital Currencies” held in Ankara on 9-10 October 2023.

2.11.3 Relations with Central Banks

Since 2020, the CBRT had been conducting bilateral cooperation activities via video conferencing in order to adapt to the evolving and changing global conditions due to the global coronavirus pandemic and to maintain effective information sharing. In 2023, when pandemic conditions eased, the CBRT decided that face-to-face communication and feedback on some issues would be more fruitful, while still organizing technical cooperation activities incorporating both methods, taking into account the time and cost advantages of video conferencing.

In this framework, in order to contribute to the capacity development of both the CBRT and the central banks with which the CBRT cooperates, 57 activities were organized with 31 partner central banks in the field of central banking, focusing primarily on current issues and developments in our mandate. Six of the activities were study visits and 51 were video conferences.

In addition to the activities organized in the meeting format, the CBRT continued to share written information to support capacity building throughout 2023. In this context, while central banks responded to five written requests for information to contribute to the CBRT’s work and projects, the CBRT responded to seven other requests to share expertise and experience with partner central banks.

Meanwhile, efforts to enhance bilateral cooperation were deepened through high-level meetings with stakeholder central banks. In addition to central banks, the CBRT also held meetings with representatives of foreign missions in Türkiye to improve relations between the CBRT and the relevant institutions and countries. In the context of the meetings, global and regional developments and the current situation regarding the Turkish economy were discussed and bilateral dialogue and partnership between the central banks were further enhanced.

2.11.4 Participation in International Working Groups

The CBRT has been closely monitoring global efforts in the field of real estate statistics and participated online in the meetings of the “Eurostat Task Force on Commercial Real Estate Indicators (TF CREI)” and “Eurostat Real Estate Price Statistics” (REPS) working groups established by the European Statistical System Committee (ESSC) within the scope of the recommendations of the European Systemic Risk Board (ESRB) to close data gaps in the field of real estate.

The CBRT participated online and contributed to the periodic meetings of the World Bank’s International Committee on Credit Reporting (ICCR). The CBRT has been a member of the ICCR and has been actively participating in its meetings since 2009. Moreover, the CBRT participated in the “Governance and Member Liaison” subcommittee chaired by a CBRT official and contributed to the finalization of the document on sustainability.

The CBRT participated in and contributed to the WGRA, BACH, FSA and ERICA working group meetings within the scope of the European Committee of Central Balance Sheet Offices (ECCBSO) as a member. The ECCBSO was established to enhance cooperation among balance sheet offices of European Central Banks, improve data processing techniques and analyses, and create comparable data sets.

The CBRT hosted the annual meeting of the ECCBSO-FSA working group, which was chaired by the CBRT, in Istanbul.

Within the scope of the ECCBSO-ERICA working group membership, Türkiye contributed to the database created jointly by Austria, Belgium, France, Italy, Germany, Greece, Portugal, Spain and Türkiye, and Türkiye was included in the ERICA Annual Report.

The CBRT participated in and contributed to the Main Committee Meetings organized by the CPMI (operating under the BIS) in February, June, September and December, via video conferencing.

As a member of the Central Bank Digital Currencies working group within the scope of the BIS Innovation Network, Türkiye participated in the online meetings held in March, May, June, September and December.

As a member of the digital currency working group within the scope of the Third Phase of the G20 Data Gaps Initiative, the CBRT participated in the online meetings held in May and July.

The CBRT participated in an array of activities carried out by bodies established by the FSB, CPMI and other relevant international organizations and standard-setting authorities: the Future of Payments Working Group (FoP) established under the Roadmap for Enhancing Cross-border Payments, the Cross Border Payments Expansion Workstream, Cross Border Payments Messaging Workstream, Target Data Group for the Implementation Approach for the Cross-Border Payments Targets, Working Group on Cyber Resilience for Financial Market Infrastructures (WGCR), the Crypto Assets Working Group (CWG) and the FinTech Credit Working Group that are established by the FSB, the CPMI as well as other related international institutions and standard setting authorities.

The CBRT contributed to the Financial Inclusion Task Force established under the G20 Data Gaps Initiative (DGI) that was established with the participation of all relevant international organizations, particularly the IMF and the FSB.

2.11.5 Organizations

National and International Events

The CBRT held several meetings to enhance cooperation with other central banks and international organizations and discuss issues on the Turkish economy.

The CBRT handled the logistics of the activities listed below:

• Briefing on Inflation Report 2023-I held on 26 January 2023 in Ankara,
• Briefing on Inflation Report 2023-II held on 4 May 2023 in Ankara,
• Briefing on Inflation Report 2023-III held on 27 July 2023 in Ankara,
• OIC-COMCEC Central Banks Forum Meeting held on 24-25 September 2023 in İstanbul,
• Briefing on Inflation Report 2023-IV held on 2 November 2023 in Ankara,
• IILM 31st Governing Board Meeting held on 11-12 December 2023 in Istanbul.

In international organizations and platforms, the CBRT officials gather with economic and financial circles to exchange ideas and the CBRT is represented at a level that is commensurate with Türkiye’s role. Below is a list of major events in which the CBRT participated:

• G20 Deputy Finance Ministers and Central Bank Deputy Governors Meetings on 22-23 February, 14-15 July, 11 October, 14-15 December 2023,
• G20 Finance Ministers and Central Bank Governors Meetings on 24-25 February, 12-13 April, 17-18 July, 12-13 October 2023,
• Bimonthly BIS Meetings on 10-11 September, 12-13 November 2023,
• IMF-World Bank (WB) Spring Meetings between 10-16 April 2023,
• EBRD Meeting on 17 July 2023,
• OIC-COMCEC Central Banks Forum Meeting on 24-25 September 2023,
• IMF Article IV Meetings between 25-29 September 2023,
• IMF-WB Annual Meetings between 9-15 October 2023,
• EBRD Meeting on 23 November 2023
• Ministerial Session of COMCEC between 2-5 December 2023,
• Islamic Development Bank Meeting on 5 December 2023,
• EBRD Meeting on 7 December 2023.

In-House Events and Internal Communication Activities

Various events have been organized at the CBRT to reinforce communication within and among departments, and to foster and employees’ motivation and communication.

Protocol Activities

The CBRT has organized various events to enhance communication regarding the visits of domestic and foreign delegations hosted by the Governor:

• G20 Finance Ministers and Central Bank Governors Meeting, IMF/WB 2023 Spring Meetings and New York Investor Meetings held in Washington, DC between 10-16 April 2023,
• Social programs for Turkish and foreign delegations visiting the Governor’s Office in Ankara and Istanbul
• Hosting for WB Representatives in Istanbul on 29 November 2023,
• Carrying out the preliminary preparation and organization of various meetings to be attended by the Governor throughout the year, carrying out the welcome and farewell activities within the framework of protocol rules.
• Protocol Rules Training for the Bank’s new assistant specialists held on 21 December 2023, in Istanbul.

2.11.6 European Union Harmonization Activities

In the scope of Türkiye’s EU accession and negotiation process, the CBRT contributed to the work on harmonization with the EU acquis on issues that fall in its remit and regularly reported developments in chapters for which it is responsible, in coordination with the Directorate for EU Affairs of the Ministry of Foreign Affairs.

Table 2.11.6.1 shows the latest status of the chapters in which the CBRT participated in the accession negotiations.

Table 2.11.6.1: Current Status in Chapters that the CBRT Contributes to during the Negotiation Process

In 2023, as in previous years, the CBRT participated in the Economic and Financial Dialogue meetings. At the Economic and Financial Dialogue meetings, the Economic Reform Programs (ERPs) prepared by candidate and potential candidate countries⁴ are evaluated in order to maintain the candidate countries’ dialogue with the EU during the EU accession process and to help them work in harmony with the existing system. Some of the meetings were organized in online format, while others were organized physically.

The first step in the Economic and Financial Dialogue process, the Economic and Financial Committee Alternates Meeting, was held physically in Brussels on 25 April 2023. The follow-up High-Level Officials Meeting was organized online on 4 May 2023. During the meetings, the ERPs prepared by candidate and potential candidate countries were evaluated, the Draft Joint Conclusions of the Economic and Financial Dialogue Meeting between the EU and the Western Balkans and Türkiye were discussed and the final text was agreed. The highest level and final meeting of this process, the Economic and Financial Dialogue Meeting between the EU and Türkiye and the Western Balkans, was held in Brussels on 16 May 2023. At this meeting, each participating country made a five-minute speech on the topic of “Economic Challenges in the Region, in Particular Regarding Policies to Tackle the Economic Fallout from Russia’s War of Aggression Against Ukraine” and the text of the Final Joint Conclusion agreed at the High-Level Officials meeting was adopted.

In addition, the CBRT participated in the biannual Economic Forecast Meetings for Candidate Countries organized by the European Commission as part of the Economic and Financial Dialogue process and projections regarding Türkiye’s economic and financial outlook was discussed. Accordingly, the spring meeting was held on 24 April 2023 and the autumn meeting was held on 25 October 2023 in Brussels.

Lastly, this year’s meeting of the Subcommittee No. 4 on Economic and Monetary Issues, Movement of Capital and Statistics, which is one of the subcommittees established as per the decision taken at the Türkiye-EU Association Council to evaluate the alignment of Turkish legislation with the EU acquis on “Free Movement of Capital”, “Financial Services”, “Economic and Monetary Policy” and “Statistics” chapters, was held in hybrid meeting format on 13 December 2023.

⁴ Albania, Bosnia Herzegovina, Montenegro, Kosovo, North Macedonia, Serbia, Türkiye