What Did CBRT President Naci Ağbal Say at the Meeting?

What Did CBRT President Naci Ağbal Say at the Meeting? What did CBRT President Naci Ağbal say at the meeting? Ağbal's first presentation took place today. Central Bank of the Republic of Turkey (CBRT) President Naci Ağbal, made a presentation on “Monetary and Exchange Rate Policy for 2021” Promotion Meeting. Highlights from the presentation of President Ağbal, who made a presentation for the first time since taking office, were as follows: - Price stability is a precondition for economic stability. - Ensuring price stability should be a common goal of everyone, as the central bank, we believe that we will reduce inflation, we are determined. - Economic activity began to weaken in Turkey since mid-March, April and has spread to the sector. In addition to the interest rate cut in the March - May period, the CBRT also took a liquidity measure. The contraction in the second quarter recovered in the third quarter with domestic demand. It is observed that the warming in the economy became more evident in the last quarter. During this period, the current account balance rapidly deteriorated. - We see that the main determinant of the rise in inflation is exchange rate developments. - Monetary policy decisions will be taken with the priority of price stability. - As we enter 2021, cumulative cost effects, commodity prices and expectations pose an upside risk to inflation. - We will tighten our policy stance further if conditions require it to achieve our goals. - Being aware of its responsibility in reaching the target, the CBRT will show a determined and determined attitude within the target horizon. - Monetary policy will be established and implemented in 2021 in a simple and understandable framework. - The main policy tool of the CBRT is the one-week repo rate. - We will tighten our policy stance even more to achieve our goals if conditions require it. - The interest rate corridor, which is used to contain intraday volatility in overnight interest rates, and the late liquidity window, which functions as the CBRT's ultimate lender, will not be used as funding tools. - Required reserves and other TL liquidity instruments will be used effectively in order to ensure the healthy functioning of the monetary transmission mechanism and to limit the risks related to macrofinancial stability. - The swap facility provided to banks can be reduced gradually. - The floating exchange rate regime will continue, the CBRT will not buy or sell foreign exchange to determine the level or direction of the exchange rates. If there are fluctuations in exchange rates that are disconnected from economic fundamentals, interventions can be made on the side of buying and selling. - Tools to accumulate reserves will be used transparently and under favorable conditions. - The monetary policy board will hold 12 meetings in 2021. With the CBRT President Ağbal's firm stance and stating that they will continue tightening their monetary policies if necessary, the dollar / TL rate dropped to 7.7 levels.         Source: Investing.com