Turkish economy minister says TRY volatility is speculative and temporary

By bne IntelliNews March 6, 2015

The volatility in TRY is totally speculative and temporary, economy minister Nihat Zeybekci was quoted as saying by the Anadolu news agency on March 6, only a day after TRY hit a record low against the dollar.

Zeybekci also said he agrees with President Recep Tayyip Erdogan’s call for deeper rate cut. The Central Bank refuses to cut rates and the Bank’s this stance is an indication of the Bank independence, Zeybekci argued.

Erdogan’s comments on the Central Bank and its governor Erdem Basci have unnerved investors, sending TRY to an all-time low of 2.63 on March 5. In the face of the currency volatility, PM Ahmet Davutoglu, accompanied by Deputy PM Ali Babacan and finance minister Mehmet Simsek, held a series of meetings this week with banks in the U.S to calm investors.

Even though Davutoglu said that the talks went very successfully, the comments were very encouraging; Reuters commented that efforts by Davutoglu to reassure New York investors, who hold more than a fifth of the main Turkish stock index, appeared to have had little immediate effect. “There is a fear that we are facing a scenario where for the first time in 12 years not even Babacan has been able to convince investors. The selling is largely foreign”, a forex trader in Istanbul told Reuters on March 5.

Related Articles

Stage set for referendum battle on Turkish presidential rule as Erdogan backs reform bill

Turkish President Recep Tayyip Erdogan has approved a constitutional reform bill, paving the way for a referendum on switching to an executive presidential system with sweeping powers. PM Binali ... more

S&P warns Turkish banks face weak operating conditions this year

The areas of funding and asset quality will generate the main risks for Turkish banks during this year, Standard & Poor’s said in a report published on February 9. The rating agency expects ... more

Erdogan hits out at "exploitative" Turkish interest rate policy

Turkish President Recep Tayyip Erdogan on February 7 described interest rate policy in Turkey as "an instrument of exploitation" as he renewed calls for lenders to provide cheaper loans to boost ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss