Turkey safe port for investment even in crises

ANKARA

Turkey offers a "safe port" for investments during crises thanks to its sound manufacturing infrastructure, dynamic labor force, and market opportunities, the country's vice president said Friday.

Addressing a virtual meeting of board of directors of the American Business Forum, Fuat Oktay underlined the importance of trade cooperation between Turkey and the US.

He stressed that the world is facing one of the most serious economic shocks in its history, led by uncertainties stemming from the coronavirus pandemic.

Pointing to the disruption of raw materials, intermediate products, and services in global supply chains, Oktay said fluctuations in international trade, cross-border capital movements, and commodity markets are reflected in macroeconomic indicators.

He stressed that all those developments indicate a change in trade ties and investments globally.

But, he added: "One reality will not change, and that is that Turkey is a safe port for investors even in a crisis environment with its a strong manufacturing infrastructure, dynamic labor market, and market opportunities."

He highlighted that the pandemic showed the world that depending on a single production center such as China is not a sustainable policy.

"Global firms are relocating their production centers.

"Turkey has enough capability to become the production and investment hub for various sectors," Oktay said.

Saying that Turkey’s monetary policies, fiscal policies, and economic policies are synchronized, Oktay said the Central Bank reserves are sufficient and there will be no change in the floating exchange rate regime.

"Foreign currency injection through swap agreements will eliminate the risk of foreign currency liquidity risks," he added.

The American Business Forum in Turkey (AmCham Turkey/ABFT) is a business association and NGO, made up of US companies with operations in Turkey.

Founded in 2004 as an American Chamber of Commerce (AmCham), the group acts as a bridge between Turkey and the US to further improve bilateral trade and investments, and to support Turkey’s economic development by strengthening the business environment and stimulating foreign direct investments.

*Writing by Tuba Sahin