Foreign exchange rates will stabilize at a point where it should be and Turkey will ease the loss in its currency’s value, Economy Minister Nihat Zeybekci has said.
Speaking to state-run Anadolu Agency’s Editors Desk on May 11, Zeybekci also said Turkey must increase supply, investments and production in order to be able to solve its inflation issue.
Zeybekci said steep fluctuations in foreign exchange rates had a negative impact on the inflation rate.
“The loss in the Turkish Lira’s value and a rising trend in oil and commodity prices have negatively been affecting our economic indicators. We have not reached what we originally desired in terms of the inflation rate, mainly due to the rising costs amid the parity fluctuations,” he noted, adding that Turkey would resolve this parity issue.
“The parity will regress to where it should be soon,” the minister noted.
“Turkey needs to give a boost to its supplies, investments and production to solve its inflation problem. To decrease demand is not an effective way to combat inflation,” he added.
A persistently high inflation rate has been one of the biggest problems of the Turkish economy right now, according to analysts and investors.
