Şimşek: Economic Program on Track, Market Fluctuations Temporary

Finance Minister Mehmet Şimşek has reaffirmed the government's commitment to its economic program, emphasizing that authorities have the necessary tools to maintain stability amid recent market fluctuations.

“No Hesitation in Implementation”

Speaking at a fast-breaking dinner with the Banks’ Association of Türkiye (TBB) on March 21, Şimşek stressed the importance of institutional coordination in executing economic policies:

“We are working in close cooperation with all institutions. There is no hesitation regarding the implementation of the program.”

Measures to Stabilize Markets

Şimşek described recent market volatility as temporary and assured that the government is closely monitoring developments. He outlined a series of measures already taken, as well as additional precautionary steps ready for implementation if needed.

The Turkish Central Bank recently introduced several interventions to calm the markets, including:

• Lira-settled foreign exchange forward sales to manage currency fluctuations.

• An unscheduled interest rate hike at the March 20 Monetary Policy Committee meeting, increasing the overnight lending rate from 44% to 46%.

• Issuance of liquidity bills with maturities of up to 91 days, announced on March 21.

“Resilient Economy” Under Medium-Term Program

Şimşek credited the medium-term economic program for enhancing Turkey’s economic resilience, stating:

“Significant achievements have been made thanks to the program; all necessary measures will continue to be taken to preserve and enhance these achievements.”

His remarks come amid heightened market concerns following the Turkish lira’s decline to a record low against the U.S. dollar and euro, as well as sharp drops in the BIST 100 index. The government maintains that its policies will restore investor confidence and economic stability in the coming months.