While Central Bank Governor Fatih Karahan was making an inflation presentation at the Grand National Assembly of Turkey Planning and Budget Commission, the discussions about the "fund scandal" that shook the agenda were marked by the discussions.
Opposition parties expressed their reactions and asked officials, especially the CMB, BRSA presidents and Minister of Treasury and Finance Mehmet Şimşek, to come to the commission and provide information.
Karahan said, "Due to the recent developments in domestic and foreign financial markets, there has been a limited increase in the country credit risk premium and exchange rate volatility."
In his speech at the beginning of the meeting, İYİ Party Samsun Deputy Erhan Usta said, "Turkey is shaken by a ponzi scandal that is the 2nd largest the world has ever seen, worth 2 billion dollars, and ranks 1st in the world in terms of national income."
Usta said that there have been very serious grievances and that we are faced with a situation that poses a serious risk of threatening financial stability. Usta said that they expect Central Bank Governor Fatih Karahan to address this issue as well as inflation.
Usta said that the commission was the Parliament's specialized commission on financial issues, and although there was a big issue, the CMB, BRSA, and the Minister of Treasury and Finance Mehmet Şimşek did not come and inform the commission.
'A BIG ROBBERY'
"There is talk of a big robbery, a big profiteering, Turkey is in turmoil, it is a situation that will affect millions of people," said Usta, and added that it is possible for institutions to "see something and remain silent." Usta requested that the BRSA provide information to the commission as required by the CMB's legislation. In addition, he asked Borsa Istanbul, Wealth Fund, MASAK, Takasbank and Central Registry Agency to come to the commission and provide information.
'THE BIGGEST HIT OF THE LAST PERIOD'
NEW Party Antalya Deputy Cavit Arı requested the CMB, BRSA chairmen and the Minister of Finance to inform the commission and said:
"We are all seeing and watching together the biggest profiteering of recent times in our country, the fund profiteering. There is an issue that is happening right before our eyes. Of course, the main owner of this business is the power, the government, the Presidential system. Based on this, it is the Minister of Finance who must come and inform the commission and even the Parliament first. In addition, the Chairman of the CMB and the President of the BRSA have both their own obligations and the need to explain here what is happening in the country today regarding this issue and to inform the society about it." must be informed.”
'BUREAUCRATIC DECAY'
DEM Party Antalya Deputy Hakkı Saruhan Oluç said that the lack of any control despite warnings shows that "bureaucratic decay is very serious". He wanted the issue to be discussed in the commission.
'THOSE RESPONSIBLE SHOULD BE HELD ACCOUNTABLE'
CHP Karabük Deputy Cevdet Akay stated that corruption and irregularities have spread widely and emphasized that precautions should be taken and those responsible should be held accountable.
KARAHAN'S PRESENTATION
In his presentation, Central Bank Governor Fatih Karahan said that the disinflation process continues, although it is losing momentum. He stated that the impact of the improvement on headline inflation remained limited due to the impact of supply-side shocks. Karahan noted that they will continue to use all tools determinedly in line with the price stability target.
Arguing that the loss of momentum in the disinflation process this year was mainly due to the impact of geopolitical developments on energy prices, Karahan said that the tension that started in the Middle East at the end of February increased the risks related to energy supply and increased domestic energy prices, led by natural gas, fuel oil and bottled gas items. He stated that in addition to the tariff updates due to cost increases in natural gas, the gradual price increase in which households with high consumption pay more was also effective in the price increase.
"In recent months, the rise in fuel prices, especially diesel, has become evident," said Karahan, adding that the rise in global refinery margins as well as crude oil prices played an important role in this development.
Karahan said that the ecel mobile system made a significant contribution to the disinflation process by limiting the effects of the global supply shock on domestic prices. He noted that the system limited the reflection of the global shock to domestic fuel prices by approximately 16 points. Karahan explained that the limiting effect of the system is lower in LPG.
RISK ELEMENT
Pointing out that the lack of improvement in inflation expectations predicted at the beginning of the year continues to be a risk factor for the disinflation process, Karahan stated that this situation necessitates "maintaining a cautious stance".
ORIENTATION TO DEPOSITS
Karahan said that there have been outflows from money market and similar funds recently, but the outflows in the funds were largely directed towards deposits.
Karahan said, "When we look at the tendency towards deposits in terms of currency composition, we see that the TL preference is compatible with the current TL share. Therefore, the TL share continues to remain at 61 percent, including and excluding investment funds."
Pointing out that risk and volatility indicators have increased slightly recently, Karahan made the evaluation: "Due to the recent developments in domestic and international financial markets, there has been a limited increase in the country credit risk premium and exchange rate volatility."
Karahan stated that geopolitical developments keep the upside risks in inflation alive and continued as follows:
"For this reason, we will continue to be cautious to ensure the continuation of our gains in disinflation. In this regard, I would like to emphasize that we will resolutely maintain the necessary tight monetary policy stance until price stability is achieved. Because, I would like to underline once again that ensuring permanent price stability is a prerequisite for sustainable growth and increased social welfare."
