A new era in payments between Türkiye and TRNC

Istanbul Economic Forum, organized by the Central Bank of the Republic of Turkey (CBRT) at the Istanbul Financial Center (IFM), brought together central bank governors and senior policy makers from around the world on October 8-9.

In his evaluation at the forum, TRNC Central Bank President Rifat Günay stated that the existing problems in the global economy continue and that these problems affect the supply chain and cause oil prices to rise.

Pointing out that growth in the global economy will continue to grow next year, even if it decreases slightly, Günay said, "When the supply shocks, especially the war-related supply shocks, the oil shock, or the problems in the supply chain disappear, of course it will reflect much more positively on everything, but we need to keep our eyes open in the fight against inflation." he said.

Günay stated that the TRNC economy mainly focuses on the service sector and explained that the TRNC is an importing country and that the disruption in the supply chain causes prices to increase and this will put a little pressure on inflation.

Stating that they expect a serious acceleration in the tourism sector if the effects of the problems in the region disappear, Günay emphasized that students from abroad also make serious contributions to the Island and its economy.

"AS THINGS IMPROVE IN Türkiye, THIS WILL BE REFLECTED VERY GOOD ON THE TRNC ECONOMY"

Stating that the banking sector maintains its strength in TRNC, Rifat Günay said that when they look at the banking and financial sector, there is no serious concern in terms of financial stability.

Pointing out that every event that happens in Türkiye affects the economy of Cyprus in some way, Günay said, "We have to carry out our relations with Turkey, with the CBRT, in the broadest sense, because the economy of the Turkish Republic of Northern Cyprus will be affected by every event that happens here. If things go well in Türkiye, it will directly mean that the economy of the Turkish Republic of Northern Cyprus goes well." he said.

Stating that it is not the right approach to expect everything from Türkiye, Günay said, "As TRNC authorities, there are measures we can take, there are things we need to do. As things improve in Türkiye, this will be reflected very well on the TRNC economy." made his assessment.

"THE PROBLEMS EXPERIENCED IN THE REGION DIRECTLY AFFECT THE TRNC ECONOMY"

TRNC Central Bank President Günay stated that TRNC is an island country and has a small economy, and that the problems experienced in the region directly affect the TRNC economy.

Pointing out that Türkiye and TRNC are in the Turkish lira currency union, Günay said:

"The integration of Turkey and TRNC within the payment systems needs to be improved. If I have Turkish lira and I cannot find an investment opportunity on the island, I have to bring it to Türkiye. We do this through payment systems. An agreement was reached between the CBRT and the Central Bank of the Turkish Republic of Northern Cyprus on the Electronic Payment System (EÖS), and approvals were received. We will probably be connected to the system in terms of payments in November at the latest."