Treasury and Finance Minister Dr. Nureddin Nebati, to the İHA reporter, evaluated the Turkish Economy Model, how the increase in commodity prices caused by Russia’s war on Ukraine will have an impact on Turkey, and explained the steps taken to combat inflation and ensure supply security in food.
Stating that they explained the Turkish Economy Model, which is the economic policy to be implemented at the moment, to both domestic and foreign market actors, and that they have very clearly revealed the framework of this policy, Minister Nebati said, “The main objectives of our model are very clear, focusing on production, investment and export. “To increase employment, to ensure the balanced and stable growth of the Turkish economy,” he said.
“THE CURRENCY-PROTECTED DEPOSIT ACCOUNTS HAVE ACCOUNTED 557 BILLION TL, 56 PERCENT OF CONVERSION TO FOREIGN EXCHANGE”
Nebati stated that they have expressed at every opportunity that among the priorities of the Turkish Economy Model is the fight against inflation, “We are witnessing an increase in inflation all over the world due to rising commodity prices. We are taking all necessary steps in this regard and we continue our work with determination within the scope of the fight against inflation. In this context, we have introduced innovative and comprehensive methods such as Currency Protected Deposits. Thus, 557 billion liras have been accumulated in Currency Protected Deposit accounts, 56 percent of which will be converted into foreign currency.
“WE INCREASED AGRICULTURAL SUPPORT TO CONTROL THE INCREASE IN FOOD PRICES”
Reminding that they have recently reduced the Value Added Tax (VAT) rate on food products from 8 percent to 1 percent, and the VAT rate on electricity from 18 percent to 8 percent in order to combat inflation, Minister Nebati said, “We are using agricultural supports to control the increase in food prices. we increased. In addition, we have reduced the prices of fertilizers,” he said. From Unity to Blessings Application will be announced soon, Minister Nebati, who shared the information that they continue to work on the project called “From Unity to Abundance”, which aims to increase consumer awareness against price changes, and that they will announce soon, said that by creating a system where consumers can compare prices within the scope of the project, consumers will increase their awareness and consumers can easily access affordable products.
“With the Inflation Fighting Team, strict measures are taken on legal grounds against companies that apply exorbitant prices and stockpile”
Emphasizing that they closely monitor whether the steps they take within the scope of the fight against inflation are reflected in the prices, Nebati said:
“Companies are closely inspected and examined through field inspections of the Inflation Fighting Team established within the body of our Ministry. Strict measures are taken on legal grounds against companies that apply exorbitant prices and stockpile. In addition, we discuss our studies on structural factors that pose a risk above inflation in detail within the Price Stability Committee. In addition, with the KGF packages we have implemented, we selectively support our enterprises and exporters that invest without creating an inflationary effect.”
“WE EXPECT SUPPORT FROM LEGAL PERSONS IN FIGHTING INFLATION TO COMPLETE THE STEPS WE TAKE”
Pointing out that they have implemented both short-term and medium and long-term policy steps to demonstrate their determination in the fight against inflation, Minister Nebati said, “The support of all our stakeholders is absolutely crucial in the fight against inflation. To complement these steps we have taken, we expect support from legal entities in the fight against inflation. We will continue our work in the coming period with the participation of all our stakeholders in order to reduce the inflation rate,” he said.
Noting that with the gold savings ecosystem, citizens can transfer their physically saved gold to the financial system through jewelers and banks in a way that he describes as easy and safe, Nebati said:
“If our citizens demand, they can easily get their gold back physically through jewelers and banks, which are distribution channels. They will be able to easily deposit their physical gold in Gold Warehouse and Participation Accounts, and they will also benefit from value protection by opening a Gold Conversion Deposit and Participation Account with Turkish lira amounts in return for their gold, while at the same time gaining risk-free income.
“THE STEPS WE TAKE, WE AIM TO INCLUDE UNDER PILLOW GOLD INTO THE FINANCIAL SYSTEM AND IMPROVE OUR COUNTRY’S DOMESTIC SAVING OPPORTUNITIES”
Reminding that they started the Quarter Account application, where citizens can easily use the Mint Jewelery Gold, which has the largest share in their savings, and can withdraw it physically whenever they want, as of March 1, Minister Nebati said: ” said.
Emphasizing that all institutions of the state take the necessary measures in order to avoid supply shortages in food, Nebati said, “In this context, in order to balance the domestic supply and demand of TGB, whose capital is fully owned by the Treasury, and to prevent price increases as much as possible, grain imports and sunflower seeds for flour and feed regulation. oil imports continue and our Ministry provides financial support to the Organization”.
Reminding that customs duties have been zeroed so that the private sector can also import cereals and sunflower oil when necessary, apart from the Turkish Grain Board (TMO), Nebati said that in order to ensure supply security and price stability in food products, canola oil, safflower oil, which can be a substitute for oil raw material canola seed and sunflower oil, He stated that it was decided to temporarily apply zero customs duty rates on corn oil, soybean milk and palm oils from March 4 until June 30.
“MARKETS ARE CONTINUOUSLY FOLLOWED BY WORKING IN COORDINARY WITH RELATED MINISTRY”
Sharing the information that the Ministry of Agriculture and Forestry has been authorized to impose export restrictions on animal and vegetable products such as meat, rice, flour, oil when necessary, Nebati said, “Export restriction on red lentils, beans and olive oil started at the end of February 2022. As of March 8, exports of sunflower oil, soybean oil, sunflower seeds, safflower, cottonseed oils, rapeseed, rapeseed and mustard oil, corn oil and margarine have been suspended. The markets are constantly monitored by working in coordination with the relevant Ministries,” he said.
Nebati stated that necessary steps were taken with the intervention of President Recep Tayyip Erdoğan in order to ensure supply security and prevent imports from being interrupted.
“THE NEWS MADE BY MANIPULATION, OUR COUNTRY’S FOOD STOCK IS SUFFICIENT”
Nabati stated that although there was a temporary disruption in the food supply from that region due to the developments that took place after Russia’s attack on Ukraine, the necessary steps were taken by the relevant ministries. Our country’s food stocks are at a sufficient level,” he said.
“We are taking the necessary measures to ensure that oil prices, which rise from $ 77 to $ 130, are reflected as little as possible on our citizens.”
MINISTER NEBATI, TALKING ABOUT FUEL, SAID THE FOLLOWING:
“Unfortunately, as a country, we import more than 90 percent of petroleum products. As it is known, prices in oil purchase and sale are formed according to the most accessible world free market conditions and price monitoring is carried out by EMRA in this framework. Fuel prices are shaped according to oil prices determined in international markets.
With the effect of the developments in Ukraine, oil prices rose from 77 dollars at the beginning of the year to 130 dollars. This increase is inevitably reflected in fuel prices. As the state, we are taking the necessary measures to ensure that these increases are not permanent and that they reflect as little as possible on our citizens.”
Minister Nebati stated that they have discussed the problems faced by the Turkish economy by meeting with both domestic and foreign market actors since the first day they took office, and said, “In these meetings, we exchange views on many issues, especially the Turkish Economy Model.”
“THE BIGGEST PROBLEM FACING THE TURKISH ECONOMY FOR THE CURRENT TIME IS HIGH INFLATION”
Stating that they work with all institutions to listen to the problems and troubles faced by the business world and to find solutions, Nebati said, “At the moment, the biggest problem facing the Turkish economy is high inflation. Therefore, we are aware and aware of high inflation, and we do many studies to control inflation and share them with the public as they are completed.
“ESPECIALLY THE FEEDBACK WE RECEIVED AT OUR VISIT TO THE UK IS VERY POSITIVE”
Minister Nebati reminded that they discussed many issues related to the Turkish economy in the meetings he held with the senior managers of various banks and investors abroad, and said, “The feedback we received, especially during our visit to England in the past months, is very positive. In the coming period, we will continue to take steps towards the development and growth of the Turkish economy by continuing to hold meetings with all market actors, to listen to the problems they face, and to find solutions.”