Mubasher TV
Contact Us Advertising   العربية

Turkey must stick to support stability - IMF

Turkey must stick to support stability - IMF

Mubasher: Turkey has to adhere to wise economic policies to maintain stability and curb imbalances amid erratic market, a spokesperson for the International Monetary Fund (IMF) said.

“In light of recent market volatility, the new administration will need to demonstrate a commitment to sound economic policies to promote macroeconomic stability and reduce imbalances, while ensuring full operational independence to the central bank to pursue its mandate of securing price stability,” the Washington-based fund's spokesperson told Thomson Reuters on Wednesday.

The Turkish lira (TRY) lost about 40% of its value against the US dollar this year, on the back of Turkish President Recep Tayyip Erdogan’s repeated calls for lower interest rates despite high inflation, as well as his diplomatic and trade feud with the US.

Last week, the US administration raised tariffs on Turkish steel and aluminium imports, enraged with Ankara’s detention of evangelical pastor Andrew Brunson on the charges of backing the failed coup in 2016.

The Turkish lira also was supported by news that Qatar, vowed to invest $15 billion in Turkey, which would channelled into banks and financial markets, a Turkish government source told the London-based news agency on early Wednesday.

“We have received no indication from the Turkish authorities that they are contemplating a request for financial assistance,” the spokesperson added, noting that the fund is closely monitoring the situation.