Turkish PM says lira will keep fluctuating until Trump takes office
ANKARA
Global markets will continue to see steep fluctuations, which also hit the Turkish Lira badly, over the next 1.5 months before U.S. President-elect Donald Trump takes office, Prime Minister Binali Yıldırım has said. ”The turbulence we are experiencing is temporary, our economy is resistant to this … We will continue to see steep fluctuations over the next 1.5 months, until U.S. President-elect Donald Trump takes office, as analysts have emphasized,” Yıldırım said in an interview with state broadcaster TRT Haber late on Nov. 24.
He also noted that Turkey has also faced several shocks, including a failed coup attempt, which played a key role in making the lira the one of the worst performing currencies right now.
The lira has lost some 14 percent of its value against the dollar over this year, hit by both the strengthening dollar and investor concerns.
Turkey’s Central Bank raised its benchmark interest rate by 50 basis points on Nov. 24 in an unexpected move, ordering the first increase in nearly three years, as a skyrocketing U.S. dollar and domestic worries continue to batter the lira.
“These days will pass. As the government members, we have had some forecasts and reflected on whether other tools can be applied,” Yıldırım noted.
There is no loss in Turkey’s net foreign exchange reserves and the economy is able to ride out current turbulence, he also pledged.
Yıldırım stressed that the government will “take the required measures to support the lira until sharp global fluctuations end.”
“Let me remind everyone: There is no loss in the Central Bank’s net reserves, although there is some decline in gross reserves amid the latest fluctuations. The Central Bank has been closely following this process,” he said.
He also said there is “no multi-headed system in economic administration,” dismissing claims on the contrary.
“I do not accept such claims. I am the head of the Economic Coordination Board. After me, Deputy Prime Minister Mehmet Şimşek can talk about the economy, as this is his scope of duty,” the prime minister stated.
