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Basci Forecasts Turkish Lira Rally, Says Losses Are ‘Temporary’

October 01, 2011

Oct. 1 (Bloomberg) -- Turkish central bank Governor Erdem Basci said declines in the lira are “temporary” and the currency will appreciate within a year.

“Going forward, there won’t be any additional losses that the central bank doesn’t desire,” Basci said in Istanbul after meeting with with members of the Turkish Industry & Business Association. “All the preparations are in place for us to maintain a less volatile lira as it drops or gains.”

Turkey has monetary and rate policies in place to manage the value of its currency, Basci said. The country and its private sector don’t face any “serious” problems, he said.

Basci said automatic increases to natural gas and oil prices are included in the bank’s most recent inflation forecasts. The central bank will review whether the forecasts need to be updated in its next inflation report. Recent increases are “positive” in terms of price stability, he said.

To contact the reporter on this story: Emre Peker in Ankara at

To contact the editor responsible for this story: Steve Bryant at

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