Central Bank Governor Karahan Makes Statement on the Fund Process
Central Bank Governor Fatih Karahan stated in his presentation at the Grand National Assembly of Turkey (TBMM) that fund outflows have been directed towards deposits and that the tight monetary policy will continue.
In his presentation at the TBMM Plan and Budget Committee, Central Bank Governor Fatih Karahan evaluated recent developments in the money market and reported that outflows from funds have largely been directed towards deposits.
Fund Outflows and Deposit Growth
Central Bank Governor Fatih Karahan stated that outflows from money market and similar funds have largely turned towards deposits. It was reported that significant growth was recorded in commercial and savings deposits during the fund crisis process.
Tight Monetary Policy Stance
It was emphasized that the tight monetary policy will be resolutely maintained until price stability is achieved. It was stated that a cautious approach will continue to be maintained during the disinflation process because geopolitical developments keep risks alive.
Turkish Lira and Foreign Exchange Market
It was noted that the share of the Turkish Lira, both including and excluding investment funds, remained flat at the 61 percent level. It was observed that individual investors' sales of foreign currency and precious metals continue alongside the tight monetary policy.
Impact of the Sliding Scale System (Eşel Mobil)
It was announced that the Sliding Scale System limited the reflection of global shocks onto domestic fuel prices by approximately 16 points. It was stated that this balancing effect was more pronounced in diesel and gasoline, while it remained lower in LPG.