Turkey to reduce lira volatility, Erdoğan aide says


Turkey will take steps to reduce volatility in the lira after the currency sank to a record low this week, BloombergHT reported citing Cemil Ertem, a senior economic adviser to President Recep Tayyip Erdoğan.

The central bank is adopting a tight stance on monetary policy, Ertem told state-run TRT television, according to BloombergHT.

The Turkish lira has slid as concern mounts that the government is ignoring the dangers of double-digit inflation and a widening current account deficit in pursuit of economic growth ahead of elections last year.  The currency hit a low of 4.16 to the dollar this week. It traded at 4.08 on Friday.

Ertem said the Turkish Treasury probably would not increase its borrowing this year. Less than one percent of loans granted under a government-sponsored programme to boost economic growth last year are proving to be non-performing, he said.

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