Babacan Says, "dollar Pools" Being Played Througout Turkey

- Turkish Deputy Prime Minister Ali Babacan said that, "dollar pools" was being played througout Turkey nowadays, pointing out the surge of dollar to record highs against lira, on Friday.

"The increasing arguments among us is one of the reasons of the lira depreciation; but in general it is not a particular development of Turkey" he said in his opening remarks at the Uludağ Economy Summit.

Turkey's leading economy event Uludağ Economy Summit, organised in cooperation of Capital and Economist magazines, is being held on mount Uludağ, in Turkish industrial region of Bursa.

Babacan, told the Uludağ Economic Summit that the central bank alone should be responsible for communicating its policy messages. However, he also said the predictability of monetary policy needs to improve.

Babacan said that messages regarding central bank monetary policy should only come from the bank itself, adding that the current account deficit per GDP ratio will likely fall to 4 percent this year on the back of declining oil prices.

Markets have been unnerved by President Tayyip Erdoğan's frequent attacks on the central bank, including comments that interest rates cause inflation and that those who defend high rates are guilty of treason.

The fulminations have also sparked worries about central bank independence, helping send the lira currency to a series of record lows against the dollar and other hard currencies this year.

The dollar hit its historical level at 2.6470 lira last week, on his continious attacks on the central bank. Dollar fell to below 2.60 lira after Erdoğan's meeting with Central Bank Governor Erdem Başçı on late March 11.

Erdoğan said on March 12 his meeting Başçı had ended positively and with a consensus, comments which also appeared designed to ease tensions over monetary policy. Dollar slid to 2.5950 - 2.600 lira after the meeting, which is still swinging at the same level.

Babacan also stressed the Turkey should be a "real constitutional state" to shift to be a "first class" democracy. "We can shift to first class constitutional state, unless we establish a system with no gray areas, where the legistlations and the regulations are very clear."

"Being a constitutional state is the main condition for being an advanced economy" he added.

Finance Minister Mehmet Şimşek will make the closing speech tomorrow. Key figures from around the world and from Turkey are participating as speakers in Fourth Uludağ Economy Summit, including former ECB President Jean Claude Trichet.

CEO of Google Ideas Jared Cohen, Bild's Editor-in-Chief Kai Diekmann are also among the speakers of the Uludağ Economy Summit.

Economists, politicians and leading names of business world are attending the Summit, where pannel discussions will are being held on various topics. Panel discussion topics of the Uludağ Economy Summit are as follows:

Global agenda of a leader, What is happening in the silicon valley?, Growth strategies in a digital era, Silk road revives: the future of Chinese – Turkish economic relations, Africa: Continent of opportunities, Preparing for tomorrow: digital transformation, investment, new opportunities, Time for change in retail, Sustainability agenda of a leader, Regional base/global power, Entrepreneur: billion dollar company, The future of European economy.

An award ceremony of female-friendly companies will also be held during the Summit.

Video stream:

- Opening remarks
- Babacan speaking
- Details