MALLORCA - State Minister Ali Babacan said on Saturday that Turkey should get used to floating exchange rate and stated that they would not give up this policy.
Babacan, who attended the Formentor Forum in Mallorca island of Spain, told reporters that risks mentioned in floating exchange rate were baseless.
Stating that no one could give answer to what the right exchange rate was and market determined it, Babacan said that what was important was that finance, banking and real sectors should protect themselves against flux in exchange rate. He added that the Central Bank made necessary intervention in exchange rate when there was excessive flux.
Babacan said that the policy which aimed at protection against floating rate should be settled in Turkey.
''We are in a new economic atmosphere. We should comprehend well conditions and circumstances of this atmosphere. Markets should determine the right exchange rate,'' he stated.
Upon a question on 8.5 billion U.S. dollars that the United States would grant to Turkey, Babacan said, ''technical work continues. We also discussed it with IMF. We disregard this loan. We will use it when we need it.''
Attending the forum on Agriculture and Development in Mediterranean Countries, Babacan said that Turkey had the largest agricultural field in the European Union (EU) and stated that Turkey was one of three exporter countries in Mediterranean region.
Stating that the EU had an agriculture policy which changed continuously, he said that after Turkey became a member of EU, it could easily fulfil its adjustment regarding agriculture sector.
Babacan noted that 4 percent of working people was in agriculture sector in EU while 34 percent of working people was in agriculture sector in Turkey.
Babacan will proceed to Rome on Sunday to attend meeting of economy ministers which will be held on Monday. He will also participate in a conference in Siena.
(EÖ-BRC) 18.10.2003