CBRT President Karahan: "As demand conditions improve, we will see better results in inflation."

The President of the Central Bank of the Republic of Turkey (CBRT), Fatih Karahan, and the Minister of Treasury and Finance, Mehmet Şimşek, recently held a teleconference with international investors to share critical insights regarding the trajectory of the Turkish economy. The discussions focused on fluctuations in the currency market, local investor preferences, and inflation strategies.

During the conference, the issue of dollarization trends among local investors was a key topic. Karahan explained that local decisions are influenced by currency market volatility and the returns on the Turkish Lira (TL). He emphasized that changes in currency demand are closely linked to local investors' return expectations and market conditions, highlighting the need for investors to balance risk and returns effectively. Additionally, Karahan addressed the CBRT's disinflation strategy, clarifying that it is not solely currency-dependent but also considers supply and demand factors.