Turkish Finance Minister Emphasizes Stable Economic Policies to Boost Capital and Currency

Shafaq News/ Turkish Finance Minister Mehmet Simsek stated on Thursday that Turkey is currently implementing predictable economic policies based on the principles of a market economy, a free exchange rate system, and an inflation-targeting model.

Simsek said on Twitter that these policies aim to attract capital, facilitate financing and investments for production, and stabilize the value of the Turkish lira, which has experienced recent depreciation against the US dollar.

"Currency stability is the most effective solution to prevent dollarization," Simsek tweeted.

Earlier on Thursday, the Turkish Central Bank raised interest rates by 650 basis points, increasing the rate from 8.5% to 15%. This move departs President Recep Tayyip Erdogan's previous policy of reducing interest rates.

As a result of the decision, the Turkish lira depreciated by 2.5% against the US dollar, reaching 24.60 lira per dollar.

This development brings the lira's losses against the US currency for this year to nearly 23%.