Central Bank of Turkey President Karahan: The demand for foreign currency has decreased with the reduction in exchange rate volatility.

Foreks - The President of the Central Bank of the Republic of Turkey (CBRT), Fatih Karahan, and the Minister of Treasury and Finance, Mehmet Şimşek, are conducting a teleconference with international investors. According to CNBCE, when asked if the dollarization among locals would continue, President Karahan stated, "According to our research, the decisions of locals vary based on the volatility in the foreign exchange market and the returns of the Turkish lira. Initially, local demand has increased due to current developments; however, as returns rose and currency volatility decreased, foreign currency demand has declined."

In response to a question about whether Turkey's real effective exchange rate-based disinflation strategy would continue, Karahan remarked, "The CBRT's disinflation strategy is not dependent on the exchange rate. Supply and demand factors play a significant role here. As demand conditions improve, we will see better results in inflation. There has been about a 4% monthly depreciation in the currency basket. You can estimate the impact on inflation with a pass-through rate of around 30-40%."