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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Turkey to unveil ‘new economic model’ as lira slides

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ISTANBUL: Turkish Finance Minister Berat Albayrak plans on Friday to outline plans for a “new economy” with single-digit inflation, in a move aimed at reassuring investors as the lira plunged to record lows.


The lira fell by nearly 3 per cent on Thursday to 5.44 against the dollar amid lingering tensions with Washington over the continued detention of US pastor Andrew Brunson.


The Turkish currency has lost more than 43 per cent of its value against the greenback since the start of the year, raising concerns over external debt and a potentially overheating economy.


Albayrak, who is also treasury minister, plans to announce the “framework for a new economy model” against “speculative statements in the markets,” his ministry said on Thursday.


Ankara sees no foreign exchange and liquidity risk for companies, the ministry said, adding, “The Turkish banking system is capable of managing financial fluctuations effectively thanks to its strong capital structure and balance.”


The government expects to secure economic growth of 3 to 4 per cent in 2019, and reduce the inflation rate to single digits, it said.


The US imposed sanctions on Nato ally Turkey over Brunson’s detention. President Recep Tayyip Erdogan announced tit-for-tat measures.


Brunson, detained in October 2016 and arrested in December that year on charges of espionage and terrorism in Turkey, currently remains under house arrest in Izmir province.


A Turkish delegation met officials in Washington this week to help end the rift, but there was no concrete outcome. — dpa


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