World Bulletin / News Desk
Turkey's Central Bank has the necessary tools to intervene, said the Turkish Minister of Economy, Nihat Zeybekçi, on Friday.
“With the right approach, we can raise the value of the Turkish lira. We can do so by reducing the use of the dollar, privatization efforts, reduce the foreign exchange demand and increase the demand for the Turkish lira," said minister Zeybekçi.
The bank reduced reserve requirement rations by 50 basis points, effectively boosting foreign Exchange liquıdity. The bank also lowered borrowing limits.
“The hands of the Central Bank are not tied. We are talking about the 16th biggest economy in the world. This is not a country with a trade volume of $30 billion. We're talking about a $430 billion country," said minister Zeybekçi.
The exchange rate hit a historical record of more than 3.90 lira to the U.S. dollar on Wednesday afternoon.
“In the past third quarter, Turkey experienced a growth of 1.8 per cent for the first time in 27 quarters. In this period, we have not contributed positively to the growth of exports in the last two years. There is no need to fret over growth or foreign exchange rates. I expect a good performance in terms of Turkey's growth," said minister Zeybekçi.
Emerging markets have suffered since the U.S. presidential election in November. Investors have pulled out in anticipation of rising global instability and rising interest rates across the developed world.
“We are one of the best in the current account deficit, one of the best in growth. The results we have achieved in the past few months in terms of inflation were beyond our targets," said minister Zeybekci.
The Central Bank has said that it is monitoring excessive market volatility and will take the necessary measures.