Nabati: Deposit with currency protection cannot be canceled this year

Nureddin Nebati, Minister of Treasury and Finance, made assessments on topics such as inflation, the evolution of exchange rates, interest rates, pensions and civil servants.

Minister Nebati claimed that the rumors about the currency did not reflect the truth and that there was no post-election rally. Minister Nabati added that two ministries are working on a July increase in the minimum wage and an increase in social participation for retirees. Nebati also stated that the exchange protection deposit request cannot be rescinded this year.

‘WE ARE COMMITTED TO INFLATION TARGETS’

Answering questions about the NTV live broadcast, Nebati said:

* We do not wait for TUIK. We form our own team. We monitor the field to track market volatility.

* Now, inflation has passed the part where it falls because of the base effect. Factors such as the measures we took and the decrease in logistics costs eased the pressure. Diesel is below last year’s price. Fertilizer prices have fallen. We will see the effect of this tangibly.

* The fact that energy costs have fallen and the exchange rate has remained at a certain level has a positive effect on inflation. I stress that our citizens must bring their expectations in line with our inflation targets and take a position accordingly, without looking left or right.

* We adhere to our targets in the PMP (inflation target 24.9 percent by the end of 2023, 13.8 percent by 2024, 9.9 percent by 2025). We have seen that the impact of the earthquake on inflation will be limited.

EXPLANATION OF THE TIMES

* (Minimum salary, increase in civil servants and pensioners) A study is being carried out with our Ministry of Labor. There is a payment of 6 points according to the collective agreement, plus there is an inflation difference. If it does not reach a sufficient rate, we continue the work.

* We, as a government that complies with budgetary discipline, will create the source without compromising discipline and go in the direction of our President’s announcement.

‘Rally rumors about currency exchange do not reflect the truth’

* (The possibility of a sharp increase in exchange rates) Rumors that the exchange rate rally will occur again do not reflect the truth. Although the formation of the double price of the coin strengthens the rumors, there is no rally.

* Some may expect high interest rates, that will not happen. No economic manager from the opposition wing said he would raise interest rates. Will you raise the rate or not? Those who are trying to shine on the opposite side cannot say that interest rates will rise. The market has taken a clear stance on rate hikes. Let me express that we both know that this step will cause many different traumas.

* Currency protection has been temporarily introduced and is expected to be implemented later this year. Currently there are 2 million users. It has become such a user-accepted tool in Turkey that exit scenarios will not happen this year.