Fitch Ratings: Fund Investigations Do Not Create Systemic Risk and Dollarization

Douglas Winslow, Senior Director of Country Ratings for Turkey at Fitch Ratings, stated that they do not expect a systemic risk or dollarization due to the ongoing fund investigations, and that the Turkish economy is resilient against external shocks.

Assessments on Fund Investigations

Douglas Winslow, Senior Director of Country Ratings for Turkey at Fitch Ratings, made statements regarding the economic impacts of the fund investigations being carried out in the country. Winslow emphasized that, looking at the economy as a general picture, these investigations do not create a risk of dollarization and they do not expect a systemic risk.

Resilience Against External Shocks

Stating that the Turkish economy is resilient against external shocks, Winslow noted that the current improvement in reserves, in particular, is at a sufficient level against potential risks. It was recorded that these developments do not currently create any pressure on the country's credit rating.

Credit Rating and Inflation Expectations

It was reported that no sudden change is expected in Turkey's credit rating over the next few years. In addition, it was conveyed that year-end inflation is projected to decline to the level of 30.5 percent and that the Central Bank will maintain its tight monetary policy.

Growth and Exchange Rate Forecasts

While it was stated that Fitch's 2026 growth forecast for Turkey is 3.8 percent, it was expressed that the year-end exchange rate expectation stands at 51 liras and the end-2027 forecast is at the level of 60 liras.