Simsek, a former economist of US bank Merrill Lynch, was forced on Sunday to deny opposition claims that he was going to resign. Erdogan expressed full support for his economy czar on Monday, triggering a relief rally in TL assets.
"We are working on this and we will continue to take all measures necessary for the correct functioning of the markets," the minister wrote on X.
"I beg you not to believe false news."
Erdogan threw his full support behind Simsek on Monday
Turkish President Recep Tayyip Erdogan pledged his commitment to the investor-friendly economy policies he embraced in 2023, blaming the opposition for market volatility spurred by the detention of his biggest rival.
“We will never allow the gains we have made from the economy program implemented in the last two years to be harmed,” Erdogan said in televised remarks after a cabinet meeting on Monday. “Our institutions have both the authority and the will to ensure healthy market mechanisms”
wrote Bloomberg.
[embed]https://www.youtube.com/watch?v=8qnXs2jOFCo&t=52s[/embed]
Erdogan said that the opposition’s reaction had caused “a baseless and artificial volatility” in the markets.
The Turkish president has traditionally been in favor of ultra-low interest rates, prioritizing growth over controlling prices despite the worst inflation crisis in his two decades in power. However, the appointment of Treasury and Finance Minister Mehmet Simsek two years ago heralded a u-turn, with inflation decelerating as interest rates peaked at 50%.
Erdogan’s open support for Mehmet Simsek reinvigorated Turkish stocks, which gained 2.92% for the day, while dollar/TL stabilized just a tick below 38. Analysts PATurkey contacted stated that the exodus of investors from TL assets seemed to subside on Monday.
Press sources
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