Eyes on Central Bank - ERDAL TANAS KARAGÖL

Eyes on Central Bank

Developments impacting the world economy are continuing seamlessly. As a matter of fact, they are progressing in an unexpected manner. Donald Trump's election as U.S. president was just as surprising as the U.K.'s decision to leave the EU as a result of the Brexit referendum. The decision the Federal Reserve (Fed) will make in its December meeting in relation to a possible increase in interest rates is, unlike the Brexit and Trump decisions, expected.

Besides these developments, Turkey has overcome the July 15 coup attempt, which was then followed by the negative atmosphere created by credit rating institutions. Moody's' rate cut was the “cherry on top.” As a result, all these are creating pressure on foreign exchange in Turkey and causing the pressure to continue.

The Economic Coordination Committee that assembled for the first time under the leadership of President Recep Tayyip Erdoğan, is, during this period, important in terms of showing that the developments which have taken place are watched with gravity and strong messages to be given to the markets to keep the trust of market actors high.

Of course, here, all eyes are going to be on Central Bank. Because, with the interest rate cut decisions it realized, the new Central Bank administration displayed a policy different to that of the past administration. It is obvious that this policy has a low interest, market-friendly, growth and employment boosting result.

On another note, companies that have high foreign exchange-based public liabilities due to the rise in foreign exchange rates and a likely increase trend, need to remain unaffected during this period. Therefore, minimizing any possible risks in economy is one of the priority issues, however, it is also extremely important for risks to be assessed as a whole and balances to be well-maintained.

Central Bank is expected to assess all these risks as a total and observe the country's economy as a medium- and long-term goal rather than a short-term one.

Local Mind National Industry Project

The Credit and Dormitories Agency (KYK) rolled up its sleeves to form and establish within the scope of the Local Mind National Industry Project the idea stated as, “A local and national idea that emerged from the youth of this geography, from these lands, and a national industry to be built with this idea.” It brings together academics, writers, journalists and other speakers from different fields across the country with university students to achieve this objective.

I met with youth in the city of Tokat within this scope. I realized that the economic, social and political changes and developments that have taken place in Turkey in recent years and the progress Turkey has made need to be explained to all segments of society and particularly to the youth. Especially all university students in Anatolia must be targeted.

Turkey's youth want to break through the laziness, exhaustion and acceptance of the past periods and take part in many fields. They are questioning why the economic and technological achievements and successes in developed countries are unable to be achieved in Turkey. I personally saw that the youth have no despair in terms of achieving any of these and that they are willing, which gave me hope.

It really is important to see that the feeling of self-confidence President Erdoğan has been giving and trying to instill in the community for years has increased. Above all, the criticisms aimed at international institutions and organizations and consequently Turkey's increasingly rising significance in the region and demands to develop alternatives to existing cooperations are all a result of this self-confidence.

Hence, there is a strong desire in relation to developing countries needing to be fast and active in terms of developing new alternative organizations in an atmosphere which the world economic power balance is changing. The youth making these demands also make up the segment that will achieve the goal.

Therefore, it is important to share new ideas, discuss opportunities and state opinions concerning the present and future, when sharing Turkey's past with youth. I would like to thank KYK General Manager Sinan Aksu who made this interaction possible, brought youth together with actors experienced in their fields and finally, gave the opportunity to build a bridge between Turkey's past, present and future.

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