Minister Şimşek's statement on disinflation and exchange rates: 'Explicit or implicit...'

Minister of Treasury and Finance Mehmet Şimşek stated that the main goal of the economic program is "disinflation" and said, "We do not have an explicit or implicit exchange rate target."

Şimşek made an assessment regarding the economic program and exchange rate policy on his social media account.

Using the phrase, "The main goal of our program is disinflation. We do not have an explicit or implicit exchange rate target," Şimşek noted that country experiences show that in successful disinflation programs, the currency appreciates in real terms.

Emphasizing that they will continue to take steps to protect and strengthen macro-financial stability, Şimşek stated the following:

"As our rule-based and predictable policies succeed, confidence increases further, portfolio preferences shift toward the Turkish lira, and resource inflows to our country accelerate. While foreign interest in Turkish lira assets increases, our banks and real sector are securing long-term and more favorable financing from abroad. Our external financing opportunities from multilateral banks are also increasing. These resources are being directed not only to short-term financial investments but also to production and exports.

As the positive results of our program continue to be seen, the maturity of international capital inflows will extend further. The portfolio preferences of residents in Turkey, both individuals and legal entities, and the increasing inflow of external resources are making a significant contribution to the strengthening of our reserves. In line with our program targets, we will continue to take steps to protect and strengthen macro-financial stability."

News Source: AA