Assessment of Turkey's Economy and Fund Crisis by Fitch Director Winslow

Fitch Senior Director Douglas Winslow stated in his evaluations regarding the Turkish economy that they do not expect a systemic risk due to the fund crisis discussions in the markets and that current reserves are at an adequate level.

Fund Crisis and Systemic Risk Assessment

Fitch Senior Director Douglas Winslow reported that the recently discussed fund crisis claims are a negative development, but they do not expect them to have a direct impact on the general economy and credit rating.

Status of Dollarization and Reserves

Stating that no risk of dollarization has emerged in the economy due to the fund crisis, Winslow noted that with the recovery achieved in reserves, current reserves are at a sufficient level against potential external shocks.

Inflation and Monetary Policy Expectations

Stating that they expect inflation rates to decline to 30.5 percent by the end of the year, the official conveyed that they foresee the Central Bank continuing its tight monetary policy.

Exchange Rate and Growth Forecasts

Winslow announced that their year-end forecast for the USD/TRY exchange rate is 51 lira and their end-2027 forecast is at the level of 60 lira, while sharing the 2026 growth expectation as 3.8 percent.