The government's dollar plan revealed! How will the exit from KKM happen?

Vice President Cevdet Yılmaz answered questions from members of parliament during the 12th Development Plan deliberations at the TBMM Planning and Budget Committee.

IS THERE A TARGET FOR THE EXCHANGE RATE?

Stating that they have no targets or forecasts for the exchange rate, Yılmaz spoke as follows:

"We have no target or forecast. We have a floating exchange rate regime, and the value of the currency is determined by supply and demand conditions in the market. Depending on developments, there are various fluctuations on a daily or periodic basis. Our colleagues inevitably have to make certain assumptions in plans and programs. These are neither forecasts nor targets. These are results that emerge while working. It would not be correct to evaluate these by attributing too much meaning to them. However, there has been a significant correction and a significant movement in recent times. Honestly, we do not expect such a movement in the coming period. We do not expect such a high level of volatility. There will certainly be a certain oscillation in the exchange rate according to daily developments and supply-demand conditions. But we do not expect a movement similar to what we have experienced recently, either technically or politically."

WILL ÇAYKUR BE PRIVATIZED?

Vice President Cevdet Yılmaz said that there is no work being done regarding the privatization of the Tea Enterprises General Directorate (ÇAYKUR).

Pointing out that tea is a strategic product for the Eastern Black Sea region and a source of livelihood for the public, Yılmaz stated, "ÇAYKUR is a balancing element between the producer and the private sector. There is no other product in the region besides tea. There has been no work regarding privatization by the Ministry of Treasury and Finance or the Turkey Wealth Fund in any way. ÇAYKUR continues its operations as an economic state enterprise with its autonomous budget. Furthermore, it continues its investments away from privatization by increasing its capacity with two new factories built in 2023."

EXIT FROM KKM

Answering questions about KKM, Yılmaz said that 92.5 billion liras were paid by the Ministry of Treasury and Finance and 72.8 billion liras by the Central Bank for KKM in 2022; and 59.5 billion liras were paid by the Ministry in 2023.

Stating that KKM was transferred from the budget to the Central Bank with a legal amendment and that the Central Bank manages it within a certain integrity, Yılmaz assessed, "A certain exit process from KKM has begun with the steps taken recently, but this is not a situation that will happen all at once. It has reached a very significant volume. The exit process from KKM will continue in a certain course, without causing instability in our financial markets, with our reserve accumulation, and with positive developments in financial markets. We see that this process has begun here as well. Especially with the regulations made, the banking system is largely directing the resources released from KKM to TL-denominated financial instruments. This process will continue in the coming period."