Finance Minister Şimşek: Fluctuations in the currency market are temporary

Minister Şimşek said, “After the local elections to be held this month, Turkey will have a long period without elections to implement the medium-term program, which also includes reforms to increase productivity and competitiveness. The fluctuations in the currency market in recent times should be seen as temporary.”

Minister of Treasury and Finance Mehmet Şimşek reported that Fitch’s upgrade of Turkey’s long-term foreign currency debt rating from B to B+, and its outlook from neutral to positive, reflected the strength of Turkey’s sound economic policies.

In a statement made through the X platform, Şimşek said, “We are committed to continuing strong policies and implementing structural reforms. After the local elections to be held this month, Turkey will have a long period without elections to implement the medium-term program, which also includes reforms to increase productivity and competitiveness.”

Şimşek’s statement is as follows:

“Fitch’s upgrade of Turkey’s long-term foreign currency debt rating from B to B+, and its outlook from neutral to positive, reflects the strength of Turkey’s sound economic policies.

We are committed to continuing strong policies and implementing structural reforms.

– Ensuring price stability remains our top priority.
– Growth rebalancing continues well; domestic consumption is moderating, and net exports are strengthening.
– The current account deficit is narrowing faster than expected, and it is progressing well below 3% of GDP this year.
– The share of Turkish lira deposits in total deposits has increased by 12 percentage points since August. This trend will continue as confidence in our program increases.
– Restoring fiscal health is also a key objective. A decrease in fiscal impetus and more supportive income policies are expected this year.

We are committed to reducing the fiscal deficit to below 3% of GDP next year, including earthquake-related expenditures. It is important not to forget that achieving price stability will take time.

After the local elections to be held this month, Turkey will have a long period without elections to implement the medium-term program, which also includes reforms to increase productivity and competitiveness. Fluctuations in the currency market in recent times should be seen as temporary. The Central Bank of the Republic of Turkey (CBRT) is determined to anchor inflation expectations using all its tools. We will continue to tighten fiscal policy to support the CBRT’s efforts to lower inflation. In summary, the program we announced in September is working as expected.”