Minister Şimşek Expedites Efforts for Foreign Funding, Announces Reserve Statement
Turkey’s Minister of Treasury and Finance, Mehmet Şimşek, announced a significant increase in the country’s reserves. In a statement on his Twitter account, Şimşek revealed that the net international reserves had experienced the largest weekly increase ever recorded, with a surge of $8.5 billion. He emphasized that the government’s commitment to rational policies would continue gradually.
In an effort to further strengthen the reserves, Şimşek mentioned that the government has expedited its initiatives to acquire additional foreign resources. This move aims to enhance the country’s financial stability and economic growth.
Şimşek also highlighted the government’s determination to make TL-denominated instruments attractive for investors. As part of this strategy, the withholding support in Currency Protected Deposits will be extended until the end of the year.
Last week, the Central Bank of Turkey took a significant step by raising interest rates for the first time in 27 months. The policy rate was increased by 6.5 points, reaching 15 percent. This decision was made in order to address the rising inflation and stabilize the economy.
The Central Bank’s efforts seem to be yielding positive results, as the total reserves increased by $3.018 billion in the week of June 16 compared to the previous week. The reserves now stand at $102.801 billion, reflecting the government’s commitment to bolstering economic stability.
The news of the surge in reserves and the government’s focus on attracting foreign resources bodes well for Turkey’s economic outlook. As the government continues implementing rational policies and pursuing strategies to make TL instruments more appealing, it is expected that the country will experience further economic growth and financial stability in the future.
