Finance Minister Kemal Unakitan said Wednesday that global factors, including interest rate increases by the United States Federal Reserve and planned hikes by the European Central Bank and Japan's central bank, along with rising gold and oil prices, were driving volatility in Türkiye's financial markets.
Unakitan acknowledged that Türkiye was hit harder than some other emerging economies, pointing to a wide current accounts deficit, a presidential veto of social security reform, and uncertainty around tax policy as domestic complications alongside the external pressures.
He insisted the turbulence was short-lived, saying Türkiye's economy and financial system had grown considerably stronger, with inflation falling and structural reforms under way. He described the floating exchange rate regime as a safeguard against sharp capital movements and ruled out any change to the taxation of financial instruments, pledging a formal statement on his ministry's website.
On the current accounts deficit, Unakitan said reducing it would require structural adjustments, with export growth as the central remedy. He noted the government had already cut corporate taxes and was working to lower the tax burden on labor costs.
Historical summary. TurkishPress restated this wire report, first published in May 2006, in its own words.