Finance Minister Simsek hints at controlled Turkish lira fluctuation against dollar – Turkiye Newspaper

Treasury and Finance Minister Mehmet Simsek Thursday hinted at controlled Turkish lira fluctuations against the dollar, saying the government aims to bring inflation down to single digits as soon as possible.

The Minister made these comments during the Central Decision Board (MYK) meeting chaired by President Recep Tayyip Erdogan. Minister of National Education Yusuf Tekin also attended the meeting among other officials.

Elaborating on the economic program and austerity measures, Simsek said: “Our biggest goal is to bring inflation down to single digits and all indicators are positive currently. Our President (Erdogan) fully supports our program. In a year, inflation will decrease even further. Our ultimate goal is single-digit inflation, and despite the elections, we did not compromise on the program.”

“End-of-year figures may appear high, but this should not mislead you. We will see the program’s effects more in the summer months, around June and July,” he added.

When does the dollar fall?  

When asked if the Turkish lira would strengthen against the dollar, the minister said: “It would drop if we let it now. We are making purchases with the Central Bank, so it’s not falling. This situation will continue for a while. In the long term, we will allow the dollar to fluctuate. We anticipate a slight increase, but there won’t be jumps like the dollar hitting ₺40.”

‘We cannot rely on hot money’

Minister Simsek explained austerity measures during the MYK meeting, emphasizing implementing measures across all sectors.

He disclosed that Türkiye had received $54 billion in the last 1.5 months. “We can’t rely on hot money, we also need to attract direct investments,” he concluded.

Source: Newsroom