Finance Minister Şimşek Upbeat On Turkiye's Net Reserves
Date
12/26/2024 3:14:57 PM
(MENAFN- AzerNews)
By News Centre
Turkiye's Minister of Treasury and Finance, Mehmet Şimşek,
stated that as of December, Turkiye has met international standards
for reserve adequacy.
"Last year, reserves were a major concern, but they are no
longer an issue," he said.
Speaking at the IICEC conference organized by Sabancı
University's Istanbul International Center for energy and Climate
(IICEC), Minister Şimşek discussed Turkiye's current account
deficit and reserve balances. He noted, "Last year, reserves were a
major concern, but they are no longer an issue. Turkiye's net
reserves have reached approximately $50 billion. This is a
significant figure, with the peak being $70 billion in 2011. At the
beginning of 2018, it was around $38 billion. We will continue on
our path with healthy, rational, and correct policies. As of
December, we have achieved reserve adequacy according to
international standards."
Şimşek emphasized the continuation of rational policies in the
economy, stating, "Under the program, we have reduced the Currency
Protected Deposit (KKM) accounts by $110 billion, and this exit
will continue."
He further mentioned that there are no issues in accessing
external financing: "Turkiye has a serious inflation problem and a
cost of living issue, but the main goal of this program is to
ensure price stability. For this, monetary policy, fiscal policy,
structural policies, income policies, and policies on managed and
directed prices will all support disinflation in 2025. You may say
inflation is high in 2024, which is true, but at the beginning of
the year, inflation was at 65%. If we close the year at 44-45%, it
will be a nearly 20-point decrease, and this is not a bad decline."
Şimşek also noted that the rigidity in service inflation is
beginning to resolve and the process of reducing inflation is
ongoing. He added, "We value the expectations of the market,
households, and the real sector. Household expectations are clearly
high, but there is a decline. We ask the real sector what inflation
will be in 12 months. They say '48%,' and the year-end is already
44%. It is significant that the real sector thinks this way."
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