Foundations of Turkey’s economy are strong, say business lobbies

Turkey's business lobbies said on Tuesday that the foundations of Turkey’s economy are strong and that during this period of currency instability, real sectors, production and employment capacities were of utmost importance.

In a joint statement, TUSIAD and TOBB Union of Chambers and Commodity Exchanges said that diplomacy should be used to solve U.S.-Turkish disputes urgently.

The statement added that a concrete roadmap should be prepared to lower inflation permanently and that a tighter monetary policy is needed to stabilize the lira, which has fallen about thirty percent this month.

Turkey's currency recovered ground on Tuesday morning, rising by approximately five percent after the central bank had pledged on Monday to provide liquidity in response to the meltdown which has unsettled global markets. Finance Minister Berat Albayrak is due to hold a conference call with investors from the United States, Europe and the Middle East on Thursday.

“We are in a sensitive period, thus necessary precautions must be taken in order to prevent a lasting impact of this situation on real economy. Following the positive steps taken by the Turkish Central Bank regarding liquidity, a tighter monetary policy must be implemented for the currency to stabilize,” the TUSIAD and TOBB Union of Chambers and Commodity Exchanges statement said.

“Austerity measures to support a tighter monetary policy must be announced soon. As a business community, we believe that with the implementation of the necessary measures, our economy will quickly return to a state of sustainable growth,” the statement said.

Turkey and the U.S. are currently experiencing rocky relations following Washington’s imposition of sanctions on Interior Minister Suleyman Soylu and Justice Minister Abdulhamit Gül for not releasing American Pastor Andrew Brunson, who faces terrorism charges in Turkey.

U.S. President Donald Trump last week ramped up his attack on Turkey by doubling U.S. tariffs on Turkish aluminum and steel imports to 20 percent and 50 percent, respectively, causing the lira to lose value against the dollar.

Turkish President Recep Tayyip Erdoğan in his turn said Turkey would turn toward new markets, new partners and alternative financial tools.

“If you pressure us through the dollar, we will look for other ways to carry out our works,” he said.

Terming the recent U.S. tariffs on Turkey as an “economic war,” the Turkish president said: “We’ve seen your game and we challenge it.”

The aim of the recent U.S. pressure is “to ensnare Turkey in every field from finance to politics,” the president noted.

“We will not surrender,” Erdoğan asserted.