The Turkish Ministry of Foreign Affairs spoke about ‘cultural differences’ in a meeting with foreign investors

Turkey expects the pound to remain close to current levels after the 2021 slump by 44% against the dollar, Finance Minister Nuredin Nebati told analysts and investors in London in a bid to gain confidence in Turkish assets. , as reported by Bloomberg.

Government measures have helped restore confidence in the currency, Nureddin Nebati said, according to people who attended the meeting.

The minister left open the possibility that the government will launch new initiatives that will include efforts to return the gold hidden “under the mattresses” in the banking system, according to the same sources in the agency.

The pound plummeted in 2021 as inflation soared as Turkey’s central bank, on the orders of Turkish President Recep Tayyip Erdogan, cut interest rates by 500 basis points since September, according to Bloomberg. sees its popularity plummet amid the economic downturn during the pandemic, has an unorthodox belief that high interest rates fuel, rather than fight, inflation.

Nebati said foreign investors may find it difficult to understand the reason for high inflation in Turkey due to “cultural differences”, without elaborating.

In a statement released by the finance ministry, however, Nebati did not link inflation to cultural differences, adding that participants may have misunderstood his statements.

Inflation climbed to a 20-year high of 48.7% in January. The pound has fallen about 2.4% so far this year and is trading at 13.6291 per dollar today in Istanbul.

In a post on Twitter, the Turkish Ministry of Foreign Affairs states that it tried to explain the “economic model of Turkey” to foreign managers and bank executives. President Erdogan and other high-ranking officials argue that government policy aims to boost economic growth and employment through low interest rates and a surplus in the current account balance.