Turkish Deputy PM rules out gov't intervention to FX Rates

Babacan has ruled out any government intervention to FX rates in Turkey.

Turkish Deputy PM rules out gov't intervention to FX Rates

Turkish Deputy Premier and State Minister for economy Ali Babacan has ruled out any government intervention to FX rates in Turkey, making clear that the government was determined to stick to floating currency regime.

Babacan in an interview with the CNBC-e Channel Thursday in Davos, said any government or Central Bank intervention to the FX rates would mean shooting yourself in the foot. He said such a move was bound to cause a catastrophe in a years time at the latest.

He said the Turkish government was getting ready to take measures to attract long term foreign capital to the country and make the investment environment more appealing to foreigners.

Answering a question on the 6% current account deficit in Turkey, Babacan said a 5-6% of current account deficit was seen as a sustainable level by everyone.

He pointed out that the composition and funding of the current account deficit were important adding that it could be sustained as long as the current account deficit was composed of industrial input and was funded by long term direct investments.


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Last Mod: 27 Ocak 2011, 14:27
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