Exchange Rate Message from Central Bank Governor Karahan at Investor Meeting in Bangkok
It was claimed that CBRT Governor Fatih Karahan gave a message of flexibility in exchange rate policy during investor meetings to prevent a sharper depreciation of the Turkish Lira in the long run.
It is alleged that Central Bank of the Republic of Turkey Governor Fatih Karahan stated during investor meetings in Bangkok that the acceleration of the depreciation in the exchange rate is permitted to prevent the Turkish Lira from experiencing a sharper depreciation over the long term.
Investor Talks in Bangkok
Central Bank of the Republic of Turkey Governor Fatih Karahan met with foreign investors in Bangkok within the scope of the annual meetings of the International Monetary Fund and the World Bank.
Allegations of Depreciation in the Exchange Rate
According to a report by Bloomberg News, Karahan stated in closed-door meetings that the decline in the exchange rate is permitted to accelerate in order to prevent a sharper depreciation of the Turkish Lira in the long run.
Assessment of Pass-Through to Inflation
Pointing out during the meeting that the slowdown in economic activity has reduced the pass-through of the Turkish Lira's depreciation to inflation, Karahan correlated the timing of the exchange rate adjustment with this situation.
No Official Statement Made
No official statement has been made by the Central Bank of the Republic of Turkey regarding these allegations reportedly voiced during the investor meetings.