Treasury and Finance Minister Mehmet Şimşek leaves targets for after the elections: 'There will be a flow of funds'

Treasury and Finance Minister Mehmet Şimşek made assessments to Bloomberg. In his evaluation regarding the Turkish Lira and the exchange rate, Şimşek pointed to the period after the elections regarding investments and funds.

Şimşek said the following:

"AFTER THE ELECTIONS..."

"I believe that in the coming months, especially after the local elections, the demand for Turkey's assets will increase very significantly. In other words, the flow of funds to Turkey will increase significantly."

"Speaking about the exchange rate, Şimşek stated that they do not have an exchange rate target and that there is a floating exchange rate regime, and continued his words as follows: "I do not want to enter into the debate of whether the lira is overvalued or not as a matter of principle. But one thing is certain; if you look at the current account deficit this year excluding gold, it corresponds to 1.4 percent of the national income. Therefore, a sustainable current account deficit, that is, a current account deficit that does not increase the ratio of external debt to national income, has been achieved at the moment. If analysts are going to conduct discussions based on fundamental indicators, they should not miss this point."

Şimşek also stated that the tax exemption in the foreign exchange-protected deposit system will be re-evaluated next year and that a capital increase for public banks is not on the agenda.

News Source: 12punto