Treasury and Finance Minister Mehmet Şimşek on the 'TL': 'There will be some weakness...'
Speaking at the International Arab Banking Summit, Treasury and Finance Minister Mehmet Şimşek stated, "There will be some weakness in the TL, but volatility has decreased significantly. The volatility that was defined as an outlier in the pre-program period is now within the band followed by emerging market currencies."
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Treasury and Finance Minister Mehmet Şimşek spoke at the International Arab Banking Summit.
Şimşek said that there might be some depreciation in the Turkish Lira in the coming period, but that volatility has been eliminated.
Şimşek stated, "There will be some weakness in the TL, but volatility has decreased significantly. The volatility that was defined as an outlier in the pre-program period is now within the band followed by emerging market currencies."
Highlights from Minister Şimşek's speech are as follows:
"We are in a 1-year transition period. This is a long process. We will continue to reduce inflation for 3 years.
Companies operating in Turkey will also continue to grow.
The decline in the current account deficit will be the foundation for reserve accumulation.
Portfolio preferences will favor Turkish assets and the real exchange rate will turn in our favor. This will strengthen disinflation.
Exchange rate variability continues. There will be some weakness in the TL, but volatility has decreased significantly."