Turkish Treasury says it will announce economy steps on Thursday evening
ISTANBUL, June 9 (Reuters) – Turkey’s Treasury said the
country is a free market economy and its foreign exchange regime
is liberal, adding that new solution-oriented economic steps
will be announced on Thursday evening.
The Turkish lira recovered earlier losses
against the dollar following the statement and traded at 16.94
against the U.S. currency at 1710 GMT. Earlier it weakened as
far as 17.3 from a close of 17.17 on Wednesday.
“Unfortunately some circles take all opportunities to
question recklessly Turkey’s status as a free market economy
with a liberal foreign exchange regime,” the statement said.
The Treasury statement came after credit rating firm S&P
Global said on Wednesday there was a rising risk that Turkey
brings in additional capital controls if the pressure on its
currency and financial markets continues to intensify.
“Rapid and solution-oriented steps will continue to be
taken,” the Treasury said, saying these would notably be on the
issues of inflation and the exchange rate.
Under pressure from President Tayyip Erdogan for monetary
stimulus, the central bank slashed rates last year, sending the
lira to record lows and fuelling inflation. The currency has
shed 23% this year after losing 44% last year.
(Reporting by Ezgi Erkoyun
Writing by Daren Butler
Editing by Andrew Heavens and Cynthia Osterman)