Turkish Prime Minister says Turkey will beat US Dollar with support of citizens

Speaking in a parliamentary group speech on Nov. 29. Prime Minister Binali Yıldırım said  “Turkey will overcome steep fluctuations in foreign exchange rates with the support of its citizens, as the foundations of the Turkish economy are strong and the Central Bank has taken precautions to maintain price stability”. He went on to say “We have been cautious about the steep fluctuations in global markets and foreign exchange rates. The latest global fluctuations have negatively affected Turkey, especially since the U.S. presidential elections. We will overcome the foreign exchange fluctuations with the support of our citizens,” he said.  He alos noted that the foundations of Turkey’s economy were robust, and the government was intent on reforms that would further boost the economy.

Yıldırım said “Besides, our Central Bank has already used its tools to maintain price stability” adding that there was no decrease in the bank’s net foreign exchange reserves and that there was no reason for investors to leave Turkey.

“We are making our plans for the worst-case scenario,” said Yıldırım, adding that Turkey would carry out deals “whenever possible,” in liras instead of foreign currencies, as part of measures to make the local currency more attractive and help stop it weakening. Our exporters buy foreign currency from the Central Bank, and they now have the right to repay these debts in liras. As the government, we have also enabled our debtors to pay their debts to us in liras,” he said, adding that the latest tax amnesty enabled people and companies to restructure their money worth billions of dollars, so it brings the money back into the economy.  Turkey’s finances and its banking sector are strong. We have continued to improve the investment climate as well,” Yıldırım added.

The Turkish Lira has lost over 15 percent of its value against the U.S. dollar over 2016, hit by both the strengthening dollar and investor concerns.