Habertürk Ekonomi1 hour agoBusiness2 min readTürkiye

Statement from Karahan about the liquidation process

Quick Look

Central Bank Governor Fatih Karahan stated that the Fund Coordination Board was established and the liquidation process continues.
He said that the principle of not using public resources was decided, the outflow of funds slowed down and the strength of the Turkish lira remained strong.

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Why It Matters

The Central Bank continues the liquidation process against the instability in the financial markets and aims to carry out the process effectively with the Fund Coordination Board.

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Central Bank Governor Fatih Karahan stated that the liquidation process is continuing and announced that the Fund Coordination Board was established. Karahan said that it was decided in principle not to use public resources, that the outflow of funds has slowed down in recent days and that confidence in TL remains strong.

Central Bank Governor Fatih Karahan answered the questions of the MPs at the Grand National Assembly of Turkey Planning and Budget Commission. Karahan made evaluations regarding the current liquidation process and the developments in the financial markets.

Stating that the liquidation process is continuing, Karahan said that the Fund Coordination Board was established in order to carry out the process effectively.

Karahan said, "It was decided here, in principle, not to use public resources. Our authorized boards are taking the necessary steps, and we are working in coordination." he said.

"Outflows from the fund turned towards deposits" View the News

OUTPUT OF FUNDS SLOWED DOWN

Stating that there has been a slowdown in the rate of outflow from funds in recent days, Karahan stated that confidence in the Turkish lira continues strongly.

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Karahan said, "We see that the outflow of funds has slowed down in recent days. We can say that the confidence in TL continues strongly. A tight monetary stance is important." he said.

SPREAD RISK IS UNDER CONTROL

Emphasizing that the Central Bank is not the competent authority in terms of securities, Karahan stated that they took a series of measures against the possibility of volatility in the TL markets during the process.

Karahan stated that they assessed that the risk of spread is under control in the light of current data and said that necessary steps will continue to be taken if necessary.

PHOTO: AA

Open Questions

What are the member structure and duties of the Fund Coordination Board?
When will the liquidation process be completed?
What are the volatility measures in TL markets and when will they be effective?