The Turkish pound gained slightly on Friday after Turkish Finance Minister Nuredin Nebati said inflation would peak in January and start falling in May, reaching single-digit levels by June 2023, when elections are scheduled.
According to Reuters, the pound gains 0.7% at 10.00 (Greek time) trading at 13.51 against the dollar. It weakened 44% last year, with a monetary collapse that stalled last month following currency interventions and a government program to protect pound deposits from depreciating.
Nebati reportedly said in an interview with Bloomberg that the pound deposit facility had attracted 6 126 billion ($ 9.3 billion), of which 15% came from foreign currency accounts, with about 300,000 people participating in the program. .
He also said that the work to increase the capital of state-owned banks will be completed before the end of this month.
Annual inflation jumped to a 19-year high of 36.1% in December, the highest under President Tayyip Erdogan’s government, and is expected to reach 50% in the coming months.
But Nebati said he would relax as summer approached: “Right now we are carrying the hump of December. “Both will decrease,” he said.
“I will go to the elections with single-digit inflation in June 2023,” he said, appearing extremely optimistic about his future, at a time when rumors want the Turkish president extremely frustrated with him and the tradition of how long it takes a government official not to favor him much.
However, a central bank survey of market participants on Friday showed that annual consumer price inflation was expected to be 29.75% at the end of this year.
Nebati also said that market rates and the central bank’s policy rate had begun to converge.
Petros Kranias
Read also:
* Goldman Sachs: Turkey’s inflation above 40% in 2022 – Turks looking for dollar support
* 2021 the worst year of the Turkish pound in the 20 years of Erdogan’s rule
* New losses for the pound: Concerns grow, enthusiasm for Erdogan’s announcements drops
* Turkey: Lawsuits against former central bankers for manipulating the pound
* Turkish Ministry of Foreign Affairs: We did not sell foreign currency, the recovery of the pound is due to the trust in Erdogan
* Turkey: Opposition talks about speculative games with the pound – Halkbank’s commercial
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Source From: Capital
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