'Turkey will take all measures to support the economy'

By Bahattin Gonultas and Ilhan Toprak

ANKARA

Market developments will be closely monitored by the Turkish Central Bank, and necessary measures will continue to be taken to support financial stability, said Turkey's Economic Coordination Board on Friday, according to a source close to the meeting.

On Friday afternoon, the country's Economic Coordination Board gathered to discuss recent developments with the participation of Prime Minister Binali Yildirim and the country's top economic officials, including Deputy Prime Minister for Economic and Financial Affairs Mehmet Simsek.

The board meets regularly, usually on a weekly basis, to discuss and set macroeconomic policy.

But Friday's meeting, lasting five hours, came after the national Turkish lira currency hit another record low against the U.S. dollar, at 3.4078, following U.S. Federal Reserve Chair Janet Yellen’s remarks Thursday that the Fed could raise interest rates “relatively soon".

The currency has plunged about 9 percent since mid-November, hitting new lows almost daily this week.

"At the meeting, economic developments which affect global markets as well as the Turkish market were extensively discussed," said the source, who asked not to be named due to restrictions on speaking to the media.

According to the source, officials at the meeting said the recent changes in exchange rates were caused by developments in global markets.

"But all measures were reviewed in order to limit their impact on the country. The Central Bank will follow economic developments very closely and take necessary measures in line with its price stability target.

“Reforms that increase the economy’s resilience will be accelerated, and strong support to the real sector will continue," the source added.