Turkish President Erdoğan stated that the period of the Turkish Lira losing value in real terms has come to an end and there is a high probability of gaining value in real terms.
Speaking on the plane returning from Algeria, President Erdoğan indicated that the implemented disinflation program is likely to cause a real appreciation of the Lira.
Referring to the central bank’s ongoing tightening policy, he said, the process in which the Turkish Lira lost value in real terms has come to an end and that there was a high probability of the Turkish Lira gaining value in real terms.
“Therefore, in the coming period, we will gain investor confidence with the healthy policies and structural reforms we implement, and we are currently gaining that confidence. This confidence will trigger fund inflows. Fund inflows will cause a real appreciation of the Lira. This, in turn, will accelerate disinflation and limit the downward risks to growth. In the end, we will grow at a reasonable level, and inflation will decrease under these conditions. Inshallah, we will enter a virtuous cycle.”
Finance Minister has been warning Turkish exporters that the period of competitive advantage based on weak TL was soon coming to an end.