Impact of market volatility on economy will be limited: Şimşek

ANKARA

Finance Minister Mehmet Şimşek has signaled stability in Türkiye's economy, saying that volatility in markets has significantly decreased and that he expects the effects of recent developments on the economy to be temporary and limited, according to a press release by his ministry.

Şimsek and Central Bank Governor Fatih Karahan held a video conference on March 25 with international investors and answered their questions on current developments.

Around 4,500 investors from North America, the United Kingdom, other European countries and the Middle East showed great interest in the one-hour meeting, according to the statement.

During the meeting, Şimşek said that all necessary steps were taken as soon as possible for the healthy functioning and efficiency of the markets.

He also emphasized that necessary steps would be taken in the coming period if needed.

With the economic program implemented, the resilience of the Turkish economy has increased, inflation is on a downward trend, the current account deficit has fallen to sustainable levels and fiscal discipline has strengthened, Şimsek said.

He also stressed that the policies towards achieving price stability and structural transformation, which are the main objectives of the program, will continue with determination.

Meanwhile, Vice President Cevdet Yılmaz said that recent events had some impact on the stock exchange and exchange rates.

“Initially, there was some volatility in exchange rates, but they stabilized later on,” he said in an interview with private broadcaster Habertürk.

In response to claims that the Central Bank’s reserves declined by $25 billion, Yılmaz said that there was some loss in reserves.

“Our Central Bank also took some necessary proactive actions. So did the Capital Markets Board and other relevant institutions. And they did the right thing,” he added.

Measures were taken to prevent temporary fluctuations in the market and to maintain stability, according to Yılmaz.

They are not long-term measures with lasting effects, Yılmaz said.