Speaking at the General Assembly of the Banks Association of Türkiye, Minister of Treasury and Finance Mehmet Şimşek said, “The disinflation process will continue with a delay of a few months.” he used his words
Minister Şimşek said that price stability forms the basis of the economic program.
Highlights from Minister Şimşek’s speech are as follows:
“We will provide the necessary support through the fiscal and structural pillars to permanently reduce inflation to low single digits. I am sure that we will achieve this, even if it is a little delayed. The disinflation process will continue again with a few months’ delay and will be on track. Although we have launched a very critical application such as Eşelmobil this year, we will achieve our budget target this year.
There has been a structural improvement in the current account deficit in recent years. We have a deficit target of 3.5 percent, but it will most likely be below this.
These did not happen by chance. Price stability is very important and the most critical component for us.
This year, we experienced the negative effects of the decline in gold prices on reserves. There was a serious improvement in the reserves, there was some outflow due to the effect of the war, nearly 40 percent of the change was due to the drop in gold prices, since it was a significant part of the reserves. There is no need to worry about reserves. While 20 percent reserves are considered sufficient in the world, we are at 27 percent despite the outflows. While reserves in the world are considered sufficient to cover 3 months of imports, we have 5 months of reserves. “The exit from KKM has been largely completed.”
