Market developments will be closely monitored by the Turkish Central Bank and necessary measures will continue to be taken to support financial stability, said Turkey’s Economic Coordination Board late on Nov. 18, according to a source close to the meeting, state-run Anadolu Agency has reported.
On Nov. 18, the Economic Coordination Board gathered to discuss recent developments with the participation of Prime Minister Binali Yıldırım and the country’s top economy officials, including Deputy Prime Minister for Economic and Financial Affairs Mehmet Şimşek.
The board meets regularly, usually on a weekly basis, to discuss and set macroeconomic policy.
But this meeting, lasting five hours, came after the national Turkish Lira hit another record low against the U.S. dollar, at 3.4078, following U.S. Federal Reserve Chair Janet Yellen’s remarks on Nov. 17 that the Fed could raise interest rates “relatively soon.”
The lira has plunged about 9 percent since mid-November, hitting new lows almost daily this week.
A recent spat between Ankara and the European Union, Turkey’s main business partner, has also played a role in the fall of the lira, according to experts.
President Recep Tayyip Erdoğan accused Belgium of being a center for supporters of the outlawed Kurdistan Workers’ Party (PKK) and Fethullah Gülen, the main suspect behind the failed July 15 military coup attempt. Erdoğan also accused Germany of not being committed to the fight against terrorism and harboring PKK members.
He earlier this week suggested that Ankara could take its EU membership bid to a referendum.
“At the meeting, economic developments which affect global markets as well as the Turkish market were extensively discussed,” the source said, who asked to be unnamed due to restrictions on speaking to the media, as quoted by Anadolu Agency.
The source added that officials at the meeting said the recent changes in exchange rates were caused by developments in global markets.
“But all measures were reviewed in order to limit their impact on the country. The Central Bank will follow economic developments very closely and take necessary measures in line with its price stability target … Reforms that increase the economy’s resilience will be accelerated, and strong support to the real sector will continue,” the source added.