Speaking at the Uludağ Economy Summit, Treasury and Finance Minister Mehmet Şimşek said that the capital that emerged with the war started to return with the ceasefire.
Stating that the current account deficit will increase with the war, Şimşek said that they expect the current account deficit to remain at a manageable level.
Highlights from Şimşek’s speech are as follows:
“We are aware of the effects of the shock of war.
If the ceasefire does not continue, many countries will experience energy supply security problems. Türkiye’s energy dependence on the region is low.
Total indebtedness in Türkiye is lower than previous shocks, we will be able to overcome this shock with minimal damage. Our reserves were high, with the war there was an outflow of foreigners and some demand for foreign currency from our companies, but with the ceasefire there was a return of resources.
Market reaction shows that Türkiye has differentiated in a positive direction.
We have prioritized the disinflation program, our biggest priority is the fight against the high cost of living.
According to one estimate, the amount of gold under the pillow is at the level of 640 billion dollars.
There is confidence in the program, foreign exchange demand remained at a limited level.
“Our priorities have not changed, we will keep the current account deficit on a sustainable path, we will accelerate the reform effort, and we will continue to ensure financial stability.”
