“If there is an excess loss in value of the lira [against the U.S. dollar], we can say tell with an easy conscience that it will be temporary and that the lira will start regaining value within one year. We are confident right now,” Başçı told journalists Saturday after the Turkish Industry and Business Association, or TÜSİAD’s, CEO Forum.
The lira’s loss in value against the U.S. dollar observed until now is “both necessary and sufficient,” Başçı said, adding that a further depreciation of the domestic currency was not desirable for the Central Bank. “We have harmonized our policies accordingly.”
The Turkish Lira depreciated to 1.860 against the dollar as of Friday, losing nearly 21 percent since the beginning of the year.
There might be from time to time an excess demand for the U.S. dollar in case of a disruption in the global economy, as many will be in search of a safe investment haven, Başçı said. “All kind of structural and monetary policy conditions are in place in order to observe less fluctuations in the lira, with smaller declines and rises [in value],” he said. The governor warned however that this did not necessarily imply the lira would not lose or gain value in the future. Both could be the case, he said.
Başçı said apart from sharing information with top Turkish businessmen, he had also had the chance to hear directly from businessmen and executives about their views on the situation in domestic and foreign markets.
What concerns Turkish private sector executives the most is how European countries and the U.S. will solve the governance crisis the world is experiencing, TÜSİAD President Ümit Boyner said at the press conference.
TÜSİAD will manage the working group for global communication in the B-20 meeting, the business wing of the G-20, which will take place in November in Cannes, France. Thus, TÜSİAD representatives had the chance to share views with the Central Bank governor on the role of central banks and their policies in the current context of the world economy, Boyner said.
‘Turkey, safe port’
The main messages given at the CEO Forum, which was close to the press, are to be confident in the Turkish economy and the country’s banking system, and that Turkey is a “safe port,” Ali Kibar, the deputy chairman of Kibar Holding’s Executive Board, told the Hürriyet Daily News after the meeting. “The main message [by Başçı] was that Turkey is an advantageous country and the Turkish Lira is a reliable currency,” Kibar said, adding that he shared the same opinion. |
Source : hurriyetdailynews.com
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