ESKISEHIR (A.A) - 06.08.2002 - State Minister Kemal Dervis said on Tuesday that the reforms and European laws adopted by Turkey in the last 18 months symbolized an important stage in Turkish society.
Addressing the meeting organized by Eskisehir Trade Chamber, Kemal Dervis said that ''the things done in the last 18 months was not only an effort to return to the stability period, or an effort to resettle the macro economic balances. Very important structural changes were also undertaken by the support of the civil society, Turkey and the parliament. There is a reaction in the society against politics, and the parliament. Despite all the negative things, Turkey was able to record progress and I suppose we will always appreciate the reforms undertaken both in economic and social fields in the future. Turkey whose macro economic balance was disturbed entered into a crisis period and very negative incidents took place. The economic growth stopped, unemployment decreased and inflation increased. Unfortunately, we witness such a thing in today's world in many countries. It was an obligation to settle the macro economic balance, Turkey did that with a very heavy debt burden. It was not possible to return back to the fixed exchange regime.''
Dervis said that floating exchange rate system gives confidence to the economy and it does not carry the risks of the fixed exchange rate system, adding that ''please remember the day when Prime Minister Bulent Ecevit went to hospital. This caused great worry in the society. If fixed exchange rate system was still in force that date, this would cause a great disaster. Central Bank could have use 10 billion dollars in one day like it happened during the 19-20 February crisis. Therefore floating exchange rate system gives us safety and power. The regime prevents sudden falls and losses. The flexibility prevents that. Under today's conditions it is healthier and safer to direct the macro economy with a floating exchange rate system. Yet the fluctuations in this flexible rate regime have to decrease and it must become more stable.''