Turkish Economy Minister: Exchange rates, inflation, interest rates are 'full of froth'
Business |
In Turkey, exchange rates, inflation, interest rates are 'full of froth,' Turkish Economy Minister Nihat Zeybekci said Wednesday.
Speaking at Anadolu Agency's Editor's Desk, Zeybekci, who is responsible for the country's international trade, responded to Anadolu Agency's questions about developments in Turkish and the global economy.
"Unfortunately, there is speculative 'froth' over interest rates just before the upcoming June 7 general elections. The speculative froth has also affected the Turkish lira since the middle of March."
Turkey's upcoming parliamentary elections will be held on June 7.
According to Zeybekci, the market does not like elections. "But someone is trying to convert this one into an opportunity. Speculators, manipulators, brokers make use of these fluctuations for income. We will see that 'froth' disappear within 10 days as the election results become previsible."
Zeybekci does not assume any interest rate changes from the Turkish central bank at its May meeting.
"I do not assume any interest rate change from Turkey's central bank at its May meeting. The markets also do not have such an expectation," Zeybekci said.
Turkey's government officials, including President Recep Tayyip Erdogan, have repeatedly criticized the central bank for maintaining high interest rates, calling the policy a limiting factor for economic growth.
Touching upon the Transatlantic Trade and Investment Partnership, which is a trade agreement currently being negotiated between the EU and the U.S., Zeybekci said: "If Turkey doesn't become a member of the free-trade agreement between the U.S. and EU, or sign a simultaneous free trade agreement with the U.S., it will be impossible for Turkey to maintain its customs union agreement with the EU."
Anadolu Agency
"Unfortunately, there is speculative 'froth' over interest rates just before the upcoming June 7 general elections. The speculative froth has also affected the Turkish lira since the middle of March."
Turkey's upcoming parliamentary elections will be held on June 7.
According to Zeybekci, the market does not like elections. "But someone is trying to convert this one into an opportunity. Speculators, manipulators, brokers make use of these fluctuations for income. We will see that 'froth' disappear within 10 days as the election results become previsible."
Zeybekci does not assume any interest rate changes from the Turkish central bank at its May meeting.
"I do not assume any interest rate change from Turkey's central bank at its May meeting. The markets also do not have such an expectation," Zeybekci said.
Turkey's government officials, including President Recep Tayyip Erdogan, have repeatedly criticized the central bank for maintaining high interest rates, calling the policy a limiting factor for economic growth.
Touching upon the Transatlantic Trade and Investment Partnership, which is a trade agreement currently being negotiated between the EU and the U.S., Zeybekci said: "If Turkey doesn't become a member of the free-trade agreement between the U.S. and EU, or sign a simultaneous free trade agreement with the U.S., it will be impossible for Turkey to maintain its customs union agreement with the EU."
Anadolu Agency
