ANKARA: Turkey will not fight with markets but instead pursue a win-win relationship with them while ensuring Turkey has an effective central bank, Finance Minister Berat Albayrak was quoted as saying on Sunday.
Concerns about the central bank’s independence had intensified when President Tayyip Erdogan appointed son-in-law Albayrak as treasury and finance minister, boosting expectations that the president — a self-described “enemy of interest rates” — would look to exercise greater influence over monetary policy.
The Turkish lira has been hammered this year, losing a fifth of its value against the US dollar, on concerns about the central bank’s ability to rein in double-digit inflation, while Erdogan has repeatedly called for lower interest rates.
Albayrak, speaking to reporters on a flight to Argentina for a G20 summit, also said the government would not compromise budget discipline and that there would be a noticeable improvement in inflation, broadcaster NTV reported.
“We will not compromise budget discipline and a program that is down to earth will be prepared,” Albayrak was quoted as saying.
“We aim for an effective central bank. The central bank sees and builds the fiscal life in a correct way. Turkey will never again be this attractive for foreign investors.”
The government’s medium-term program (OVP) will also change into a “strong and solid” five-year strategy, Albayrak said.
With Erdogan having merged the Treasury and the Finance Ministry, Albayrak’s appointment effectively saw him replace both Mehmet Simsek and Naci Agbal in a cabinet that now has no obvious investor-friendly ministers.
Albayrak’s comments, therefore, are closely watched by investors for clues on whether he will seek to calm financial markets by adopting a more orthodox approach to monetary policy or reiterate Erdogan’s views that high interest rates stoke inflation.
Following his appointment, Albayrak had said the central bank is independent and will do whatever economic realities and market conditions necessitate.
Earlier on Sunday, state media quoted Albayrak as saying that Turkey was continuing its strong economic growth trend and that the foundations of its economy were strong.
The state-run Anadolu news agency quoted Albayrak as saying that the government aimed to maintain prudent fiscal policies and healthy credit growth, carrying out structural reforms and strengthening Turkey’s monetary policy framework.
“Turkey’s economy continues its strong growth momentum. Our economic foundations are going to be strong and our outlook is promising,” Albayrak said.
The central bank’s monetary policy committee, which has raised rates by 500 basis points since April in an effort to put a floor under the currency, will meet on July 24.
On the sidelines of the G20 summit in Buenos Aires, Albayrak said on Twitter that he had met with his US, Chinese, German, Brazilian, South Korean, French and Indonesian
counterparts.
Turkish finance minister says he will not fight markets
Turkish finance minister says he will not fight markets
- Turkey’s economy continues its strong growth momentum
Gold, silver, aluminum and coal gain as Middle East tensions stir supply concerns
RIYADH: Commodities such as aluminum, gold, coal, and silver have seen prices rise after US-Israeli strikes on Iran triggered supply chain concerns and prompted countries to consider shifting away from oil and gas.
Gold and silver rose on March 10, supported by a weaker US dollar and easing energy costs after US President Donald Trump suggested that the war in the Middle East could end soon, Reuters reported.
The increases have not been as dramatic as those seen on the oil markets, which saw the cost of barrel of Brent surpass $119 on March 9, before falling back below the $100 threshold the next day.
Abdulrahman Al-Sudairy, CEO of Vault Saudi, told Arab News: “Beyond oil and gas, gold is seeing the clearest safe-haven demand as Iran tensions escalate, with prices rising on investor rotation into traditional hedges.”
He added that the Strait of Hormuz is the critical chokepoint to watch, as any disruption threatens not just oil flows, but Qatari liquified natural gas exports and the ammonia and urea derivatives that feed global fertilizer markets.
“Shipping rates and insurance premiums in the tanker and LNG carrier segments are already reacting, serving as a real-time gauge of how seriously markets are pricing the risk of escalation,” Al-Sudairy said.
Vijay Valecha, chief investment officer at Century Financial, said that as of March 10, gold climbed 0.76 percent to $5,177, while silver surged 2.27 percent to $89.
“Signs that the US–Iran standoff may be moving toward a resolution sent oil sharply lower and softened the dollar, aiding the yellow metal after weeks of volatile, liquidity‐driven selling,” Valecha said.
He added that, impacted by geopolitical risk, higher oil prices and sticky inflation, gold prices have suffered from dwindling expectations for aggressive rate cuts, leading to exchange-traded fund outflows and investors selling gold to cover other positions in the equity market.
“The multi-year buying streak by central banks, led by China, has continued to underpin prices structurally as it remains firm in its role as an alternative to the dollar-based system,” Valecha said.
Similarly, aluminum prices surged to their highest level in nearly four years before erasing gains, as escalating conflict in the Middle East worsened supply prospects from the region, according to Al-Eqtisadiah.
The metal rose as much as 2.8 percent to $3,544 a tonne in London, its highest level since March 2022, before retreating to trade about $100 lower.
The spread between spot and three-month aluminum contracts closed at $47.40 a ton on March 6, also the widest level since 2022, indicating tight immediate supplies.
Aluminum had already jumped nearly 10 percent in the week ending March 6 after the conflict disrupted shipments from the Arabian Gulf, which accounts for about 9 percent of global supply.
Buyers in the US rushed to secure alternative shipments from Asia after at least two major smelters in the Middle East — one in Qatar and the other in Bahrain — were forced to suspend deliveries.
Copper and other industrial metals also declined due to reduced risk appetite.
Coal prices jumped to their highest level since November 2024 as military strikes continued in the Middle East, prompting countries around the world to consider shifting away from oil and gas tied to the region.
Newcastle coal futures, the Asian benchmark, climbed 9.3 percent to $150 a tonne on March 9, according to Al-Eqtisadiah.
This coincided with a surge in crude oil prices, which approached $120 a barrel after producers in the Arabian Gulf cut output.
An Iranian drone attack last week forced Qatar to shut down the world’s largest LNG export facility, which accounts for about 20 percent of global supply.
This prompted buyers to seek alternatives, with some importers, such as Taiwan, considering increasing reliance on coal-fired facilities if gas supply disruptions persist.
Gas prices have also risen, with natural gas prices in Europe jumping as much as 30 percent on March 9, while spot prices in Asia have doubled over the past week and remain elevated.
