President Recep Tayyip Erdoğan on Tuesday stressed improvements in some of Türkiye’s key imbalances, saying the central bank’s total reserves had reached a historic peak.
“The central bank’s total reserves have exceeded $156 billion (TL 5.33 trillion), reaching the highest level in the history of the republic, and Türkiye no longer has a reserve issue,” Erdoğan told the inauguration of a new legislative term of Parliament. That compared to around $98.5 billion last year.
More than a year into Türkiye’s policy reversal, authorities’ aggressive monetary and tightening drive has helped narrow the current account deficit, rebuild foreign exchange reserves and initiate a steep downward trend in inflation.
Erdoğan used his speech in the capital Ankara to highlight the fact that Türkiye has been the only country this year to have its credit rating upgraded by all three major agencies – Fitch Ratings, Moody’s and S&P Global.
“Our economic program is bearing fruit,” he said, referring to the medium-term plan centered on policies to address critical imbalances like inflation.
Annual inflation dipped below 52% in August, compared to its peak of 75% this May.
Data due on Thursday will likely show it continued its decline in September and dropped below the central bank’s benchmark policy rate for the first time since 2021, according to surveys.
Last month, the central bank held its main interest rate steady at 50% for a sixth straight month, saying it remained highly attentive to inflation risks but removing a reference to potential tightening.
The central bank sees inflation easing to 38% by year-end, compared to the government’s forecasts of around 42%.
“The decline in inflation will continue in the coming months, and our people will feel this drop more in markets, shopping baskets, and kitchens,” Erdoğan said.
“We have one agenda: to permanently increase the welfare and purchasing power of our citizens.”
