Inflation will be brought down by managing expectations well and introducing new instruments that would make the Turkish Lira more “attractive,” such as FX-protected deposit accounts, Treasury and Finance Minister Nureddin Nebati has said. The government recently unveiled the FX-protected deposit account scheme to prop up the value of the Turkish Lira. “The latest data obtained from banks showed that deposits in this scheme have reached 84 billion liras [around $6.25 billion],” Nebati added. The minister also said that all the government institutions would continue to work in cohesion and full coordination in the fight against inflation. Nebati stressed that he expected the FX rates to stabilize soon thanks to the measures taken. “We do not have a target for FX rates, which are determined in the free market. But we acted to the movements in the financial markets which were unrelated to economic fundamentals,” he said. In the past weeks, the Central Bank directly intervened in the market via selling transactions due to what it called “unhealthy price formations in exchange rates.” Turkey’s annual inflation rate climbed to 36.08 percent in December 2021, reaching its highest level in 19 years. Consumer prices rose 13.58 percent on a monthly basis. Tiger Woods Ex Finally Confirms Rumors Appurse Before you get a heart attack your body warns you. Here are the signs of Magnesium deficiency HealthSupportMag.com by Taboola Meanwhile, yesterday, in a note on the price developments in December, the Central Bank said that while the impact of exchange rate developments was observed in many items, prices in the core goods group, in which the exchange rate pass-through is high, increased at a high rate led by durable consumption goods in particular. International energy prices declined in this period, domestic energy prices continued to increase, with fuel, bottled gas and coal in the lead, due to exchange rate developments, it added. “Producer price-led pressures were quite strong due to the depreciation of the Turkish lira, the elevated course of commodity prices, and the lingering disruptions in supply chains,” the bank said.
Hurriyet Daily News