Turkish Deputy PM Babacan: Volatility in Turkish markets temporary and due to re-pricing.

By bne IntelliNews January 27, 2014

Deputy PM Ali Babacan said on Friday (Jan 24) at a panel in Davos that the recent volatility in the Turkish markets was basically a re-pricing process due to U.S FED’s tapering and local political developments.

This volatility is temporary, the Central Bank is taking the necessary steps and there has not been an exodus of capital, Babacan said, adding that the government is also moving to reduce the political tension.

However, TRY hit a new record low on Friday despite the Central Bank’s direct intervention in the forex market on Thursday by selling USD. Bankers said the Bank sold around USD 3bn on Thursday and the Bank’s net forex reserves are less than USD 40bn.

Revising its forecasts is not on the government’s agenda, Babacan also said, reiterating that the Turkish economy will grow 4% this year and current account deficit is expected to fall.

Related Articles

Light shed on Turkey’s propping up of Maduro with gold-for-consumer-goods exchange

A Reuters investigation has shed light on Turkey’s role in helping to prop up the Maduro ... more

HSBC Turkey’s CEO to stand trial for allegedly insulting Erdogan with Hitler parallels: report

The CEO of HSBC Holding’s Turkish unit is to stand trial over allegations that he insulted President Recep Tayyip Erdogan during the “Gezi” anti-government protests six years ago, Bloomberg ... more

Turkey’s Credit Guarantee Fund failing to compensate banks for NPLs: report

Turkish banks have not been receiving compensation since August for non-performing loans (NPLs) made to companies covered by guarantees from the state’s Credit Guarantee Fund (KGF), five sources ... more

Dismiss