Monetary tightening measures boosting Turkish economy: CBRT Governor

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The effects of the steps taken within the scope of monetary tightening and simplification have started to provide boost to Turkish economy, governor of Central Bank says

Monetary tightening measures boosting Turkish economy: CBRT Governor

Central Bank of the Republic of Turkiye (CBRT) Governor Hafize Gaye Erkan said on Thursday that they started to observe the positive effects of the steps taken within the scope of monetary tightening and simplification in the economy in the November Financial Stability Report.

"With the steps taken in the Turkish economy, the functionality of market mechanisms has increased," Erkan said in the report also stated financial debt ratio and FX open position of real sector firms continued to decline.

Erkan also pointed out that the fight against inflation in Turkiye was more crucial than ever.

"As the Central Bank, we are aware that we will make the greatest contribution to social welfare by ensuring price stability, which is our primary goal and raison d'etre. We continue our determined fight against inflation with the strong monetary tightening we launched in June," she stressed.

TURKISH LIRA DEPOSITS INCREASING

Erkan emphasized that the steps taken toward monetary tightening and simplification within the macroprudential framework led to an increase in the functionality of market mechanisms and strengthened asset prices.

"In this process, while the share of Turkish lira deposits in the financial system has increased, the decline in the share of currency-protected and FX-denominated deposits strengthens monetary transmission as well as financial stability," she stated.

Finally, Erkan said that all economic actors and decision-makers were adequately equipped with the equipment and measures they would need during this transition period in the process of establishing financial stability.

Source: Newsroom

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