Treasury Minister Şimşek: "We Have No Exchange Rate Target"
Minister of Treasury and Finance Mehmet Şimşek delivered significant evaluations regarding the Turkish economy during his speech at the IICEC Conference held under the theme "Economic Growth and Energy: Shaping the Economy of the Future."
Minister Şimşek stated that there are no currency targets and noted that there has been a serious flow of funds throughout the year, with $110 billion in foreign exchange purchases managed effectively. He emphasized the successful performance of the Central Bank in this regard.
He expressed that Turkey's debt ratio is low, and with the disinflation process, much better financial conditions would be achieved. Şimşek highlighted the importance of supply from friendly countries, particularly noting that this could gain even more significance with the new administration in the United States. He mentioned that Turkey has the opportunity to enrich without aging and stated that the country holds a good position among developing nations.
High-income country goal Continuing his remarks, Minister Şimşek referred to Turkey's potential to enter the group of high-income countries within the next couple of years. He noted that Turkey is approaching the income per capita levels of European Union countries, reiterating the importance of the increase in this income in the fight against inflation. He emphasized that their programs are being carried out with patience and determination, asserting that Turkey's growth potential remains high.
Şimşek stated that they are creating fiscal space for reforms and acknowledged the complaints of citizens regarding cost of living. He indicated that while economic slowdowns are being experienced in the short term, there is no hesitation in the long term. Touching on Turkey's investments in energy, Şimşek mentioned that by November 2024, the share of renewable energy in production will rise to 48%, and its share in installed capacity will reach 59%, placing Turkey in a good position among G20 countries.
Increase in renewable energy and nuclear capacity Minister Şimşek expressed expectations for significant investments in renewable energy and indicated that they would implement regulations to open up the sector. He announced that the Ministry of Energy would accelerate investments in energy efficiency and stated plans to increase nuclear energy capacity. Şimşek pointed out that the currently under-construction nuclear capacity is insufficient and stressed that it needs to be increased three to four times.
He added that they continue to assess Turkey's potential in renewable energy and believe that investments in this area will make significant contributions to the country's future energy policies. Şimşek expressed his conviction that these steps taken in Turkey's energy sector would contribute to both economic growth and sustainable development.