President Erdogan vows a new era to improve the investment climate in Turkey, in a speech that caused the US dollar to Turkish lira exchange rate to fall below 8.

Turkish President Erdogan speaks at the Parliamentary Group meeting of the governing Justice and Development (AK) Party in the capital Ankara on Wednesday, October 11, 2020.
Turkish President Erdogan speaks at the Parliamentary Group meeting of the governing Justice and Development (AK) Party in the capital Ankara on Wednesday, October 11, 2020. (AA)

Turkish President Recep Tayyip Erdogan has announced a series of recovery plans on economic policies, including structural reforms and financial stability, vowing to open a new era to improve the country's investment climate.

Speaking at the parliamentary group meeting of the governing Justice and Development (AK) Party in the capital Ankara on Wednesday, President Erdogan said new steps will be taken soon to improve the investment climate and make the country's economic policies more effective.

"We will achieve our goals by building economic policies on three pillars: price stability, financial stability, and macroeconomic stability. For this, we are preparing a favorable environment for long-term savings and investments," he said.

The US dollar to Turkish lira exchange rate fell rapidly after Erdogan's speech. The rate dropped to 7.99 level as of 14.23 local time (1123GMT) and then below the level of 7.9. 

The USD/TRY rate was around 8.5 last week. 

Turkey will focus more on gaining confidence and credibility in economic policies and reduce the country's risk premium, Erdogan said.

"We are building a growth structure which creates qualified employment, does not cause inflation and current account deficit, and is financed mainly by domestic savings and direct international investments," he said.

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Structural reforms

Turkey will hold a series of meetings with international investors to talk about opportunities, potential, and support the country will provide for them, Erdogan said.

"We are also in the preparations for structural reforms in areas such as improving the investment environment, increasing the depth of financial markets, increasing the quality of public revenues and expenditures, preventing informality and good governance," he added.

The country will also take new steps in strengthening the rule of law, predictability, easy accessibility, as well as fast and efficient judicial system in the coming months, the president noted.

"We will strengthen macroeconomic stability by increasing the harmony between monetary and fiscal policies and financial policies, thanks to effective decision-making mechanisms," he stressed.

Secure earnings for investments

Erdogan added that everyone will see that Turkey leads the countries in providing the highest and most secure earnings for investments.

"Treasury and Finance Ministry and the Central Bank in the finance side, Trade Ministry and Industry and Technology Ministry in the real sector side, along with other ministries and business people, we all are working together to make a new economic leap in Turkey," he highlighted.

Turkey is launching a new mobilisation focused on stability, growth, and employment, with the awareness that a country without a strong economy cannot protect its gains in other areas, Erdogan said.

"The positive trend in market indicators, with the appointment of our new Central Bank governor and the new treasury and finance minister, indicates we are on the right track," the president underlined.

Source: AA