Turkish government vows to ease pressure on lira, curb inflation at emergency meeting

ANKARA

The government will take the required measures to ease pressure on the Turkish Lira and address the country’s persistently high inflation rate, read a statement issued after an emergency meeting on the economy headed by President Recep Tayyip Erdoğan on May 9.

Erdoğan convened the emergency meeting as the value of the lira continued to plunge to record lows.

The statement said necessary measures would be taken “to reduce interest and exchange rate pressures and to combat inflation more effectively.”

“In a bid to achieve this goal, the Central Bank will continue to use its instruments effectively,” it added, without giving any further details.

At the same time, “our country will continue on the path of growth-based policies,” read the statement, while adding that Turkey will “never give up its fiscal discipline, which is one of the most important anchors of the national economy.”

The meeting also decided to take steps to attract more international investors to Turkey.

“Steps will be taken to increase the attractiveness of our country for international investment,” read the statement, without giving details.

The meeting and measures taken by the Central Bank enabled the troubled currency to rebound to 4.27 on May 9. It touched a record low of 4.3780 in early trade on May 9. The currency is one of the worst performing emerging market currencies so far this year.

The lira’s value against the dollar was 4.28 early on May 10.

The gains accelerated after broadcaster Bloomberg HT said the central bank governor, treasury undersecretary and other top economic bureaucrats would hold a meeting on May 10. However, it cited sources as saying the meeting was routine and not related to the May 9 meeting.