Turkish FinMin: Political stability not at stake, pass-through to inflation to be limited.

By bne IntelliNews December 30, 2013

The pass-through from currency weakness to inflation will be limited but the weakness in TRY is likely to lead to a significant adjustment in the current account deficit, finance minister Mehmet Simsek wrote on his twitter account.

Turkey’s macroeconomic fundamentals are strong, banking sector is healthy, strong public finances provide significant room to respond to shocks, Simsek added. There is a challenging domestic and external backdrop; however, a pretty negative scenario is largely priced in, according to the minister.

2014 budget is based on fairly conservative revenue assumptions and the government will accelerate privatizations to reduce public sec borrowing requirements, the minister said.

Most important of all, public support for the ruling AKP remains strong, hence, the political stability is not at stake, Simsek stressed.

The Central Bank raised the volume of its forex-selling auction on Friday (Dec 30) to a minimum USD 600mn from USD 450mn but TRY sank to another record low and Turkish stocks were at their weakest since July 2012 as political tension mounts.

Related Articles

Erdogan, Putin discuss deepening strategic relationship

Turkish President Recep Tayyip Erdogan and Russian leader Vladimir Putin on May 27 confirmed in a telephone call “the aspiration for further development of the strategic partnership,” the Kremlin ... more

Ankara bans all "protests" after dark, includes press events and group singing

Ankara has banned all "acts of protest" after dark. The wide-ranging ban, announced on May 26, even forbids press events, group singing and the shouting of slogans in public places after ... more

Richest Turkish families sell conglomerate shares for more than €500mn

Members of families that own Turkey’s two biggest groups of companies sold stakes in their respective groups for a combined sum of more than €500mn as the benchmark Turkish stock exchange index ... 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:

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

Dismiss