Turkish Trade Minister: The recent fluctuation in the foreign exchange market is temporary

Minister of Treasury and Finance Mehmet Simsek stated that the recent fluctuation in the foreign exchange market is temporary.

Simsek shared a post on his social media account regarding the recent developments in the economy.

Simsek stated that the international credit rating agency Fitch Ratings’ upgrade of Turkiye’s long-term foreign currency debt rating from “B” to “B+” and its outlook from “stable” to “positive” reflects the strength of Turkiye’s sound economic policies. “We are committed to maintaining sound policies and implementing structural reforms.”

Simsek emphasized that ensuring price stability remains their top priority and pointed out that the balancing process of growth continues, domestic consumption remains moderate and net exports strengthen.

Pointing out that the current account deficit is shrinking faster than expected, Simsek emphasized that the ratio of the deficit to gross domestic product (GDP) is on track to fall below 3% this year.

Simsek noted that the share of Turkish lira deposits in total deposits has increased since August 2023 and said, “This trend will continue as the confidence in our program increases.”

“After the election, there will be a long period to implement the Medium Term Program”

Pointing out that it will take time to achieve price stability, Simsek stated that after the local elections, Turkiye will have a long period without elections to implement the Medium Term Program, which includes reforms that will increase efficiency and competitiveness.

Simsek emphasized that the recent fluctuations in the foreign exchange market should be seen as temporary and said:

“The CBRT is determined to anchor inflation expectations using all the tools at its disposal. We will continue to tighten fiscal policy to help the CBRT reduce inflation. In summary, the program we announced in September is working as expected.”

Source: AA / Prepared by Irem Yildiz

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