Treasury and Finance Minister Mehmet Şimşek on Friday affirmed that ensuring disinflation is the main objective of Türkiye’s medium-term economic program, while also stressing that the government has no exchange rate target.
Şimşek said the country's experiences show that successful disinflation programs are accompanied by a real appreciation of the currency.
"The main goal of our program is disinflation. We have no explicit or implicit exchange rate target," he wrote on social media platform X, formerly Twitter.
The inflation, currently running at nearly 70%, is expected to peak at as high as 75% in May, with a projected decline in headline inflation starting as of June.
Officials and the central bank anticipate it will end the year at 38%.
Şimşek emphasized that the government would continue to take steps to maintain and strengthen macrofinancial stability.
"As our rule-based and predictable policies succeed, confidence increases, portfolio preferences shift toward the Turkish lira, and capital inflow into our country accelerates. As foreign interest in Turkish lira assets grows, our banks and real sector secure long-term and more favorable funding from abroad,” he said.
He noted that the country’s external financing opportunities from multilateral banks are also increasing.
“These funds are directed not only to short-term financial investments but also to production and exports. As the positive results of our program continue to be seen, the maturity of international capital inflows will further lengthen,” said the minister.
“The portfolio preferences of residents in Türkiye and the increasing foreign capital inflow significantly contribute to strengthening our reserves. In line with our program goals, we will continue to take steps to maintain and enhance macrofinancial stability."
