Minister of Treasury and Finance, Mehmet Şimşek, emphasized that the main objective of the economic program is “de-inflation,” stating, “We do not have an explicit or implicit exchange rate target.”
Şimşek shared his assessment of the economic program and exchange rate policy via his social media account.
“De-inflation is the main goal of our program. We do not have an explicit or implicit exchange rate target,” Şimşek stated, highlighting that the country’s experiences have shown that successful de-inflation programs result in a real appreciation of the exchange rate.
Şimşek emphasized that they will continue to take steps to maintain and strengthen macro-financial stability, stating:
“As our rule-based and predictable policies succeed, confidence increases further, portfolio preferences shift towards the Turkish lira, and inflows of resources into our country accelerate. As foreign interest in Turkish lira assets increases, our banks and real sector access longer-term and more favorable external financing. Our opportunities for external financing from multilateral banks are also increasing. These resources are not only directed towards short-term financial investments but also towards production and exports. As the positive outcomes of our program continue to be observed, the maturity of international capital inflows to Turkey will further extend. The portfolio preferences of resident individuals and legal entities in Turkey, along with increasing external inflows, significantly contribute to the strengthening of our reserves. The program’s objectives continue to be achieved.”
source: aa.com.tr/ prepared by Melisa Beğiç