Türkiye’s Minister of Treasury and Finance, Mehmet Şimşek, stated that the Turkish lira is among the best-performing currencies during his speech at the 2025 World Government Summit (WGS 2025) in Dubai. Speaking at the panel titled “The Rise of Multiple Economic Blocs,” Şimşek emphasized that Türkiye is more resilient to global trade fragmentation due to its strong trade ties with key regions.
Türkiye’s Resilience in Global Trade
Şimşek highlighted that 62% of Türkiye’s trade is with countries it has free trade agreements with, while 80% is conducted with the European Union (EU), Central Asia, the Middle East, and North Africa. He noted that this structure makes Türkiye relatively less vulnerable to global trade disruptions.
Emphasizing the complexity of the global economic landscape, Şimşek stated:
“Sound policies and structural transformation are the best ways to build resilience. Türkiye has a three-year economic program in place, and we are progressing steadily. We are ensuring fiscal discipline and disinflation is underway. Inflation is declining as we implement a tight monetary policy, fiscal discipline, and a broad structural reform agenda. These are crucial in both the short and long term. We remain committed to our policies, and our progress continues to strengthen.”
“Turkish Lira is Among the Best-Performing Currencies”
Regarding the performance of the Turkish lira against the U.S. dollar, Şimşek acknowledged that nominal depreciation due to high inflation is understandable. However, he pointed out:
“In terms of the real effective exchange rate, the lira has actually been one of the best-performing currencies. Disinflation programs contribute to currency appreciation, and we have seen this effect on the lira.”
He also shared positive developments regarding Türkiye’s current account balance, noting that the current account deficit has dropped to just 0.6% of GDP. Additionally, he emphasized that foreign exchange reserves have increased by approximately $126 billion over the past 1.5 years, strengthening Türkiye’s economic buffers against shocks.
Türkiye’s Position on U.S. Tariffs and Regional Trade
Addressing the impact of U.S. tariffs on Türkiye, Şimşek said he does not expect Türkiye to be significantly affected. He explained:
“We are already subject to high tariffs imposed by the U.S. Moreover, looking at the past two decades, we have consistently had a trade deficit with the U.S. As long as the issue remains economic rather than political, Türkiye does not meet the criteria for additional tariff measures.”
Regarding Türkiye’s relations with the European Union, he reaffirmed that despite political challenges, Türkiye remains committed to EU integration through mechanisms such as the Customs Union, the Council of Europe, and NATO.
Highlighting Türkiye’s focus on regional economic integration, Şimşek stressed:
“We want to sign a free trade agreement with the Gulf Cooperation Council (GCC) and support stability in Syria. We maintain good relations with Russia, but Europe remains our main partner. Despite political skepticism, our ties with Europe remain strong. On the other hand, BRICS is just a dialogue platform, and the G20 is the same. These are not customs unions or free trade zones. The world is changing, and regional integration will be key to overcoming fragmentation and economic vulnerabilities.“