President of the Central Bank of the Republic of Turkey (TCMB) Prof. Dr. Şahap Kavcıoğlu made a presentation titled “The Role of Central Banks in the Pandemic” at the Future of Finance Summit.
Kavcıoğlu said that the rapid spread of the epidemic worldwide affected the economies through many different channels, causing a sharp contraction in global economic activity.
“WE ARE ON TOP IN WORLD FOOD INFLATION”
Central Bank President Prof. Dr. Şahap Kavcıoğlu stated that the weight of food in the consumption basket and domestic food inflation may differ between countries, "When an evaluation is made between countries, Turkey is one of the countries where prices have increased the most. We see that food inflation in August was considerably higher than the average of the last 3 years," he said.
INFLATION SIGNIFICANTLY INCREASED IN FOOD
Şahap Kavcıoğlu also referred to the inflation data in Turkey, reminding that annual inflation increased by 0.30 points to 19.25 percent in August. Noting that last month, annual inflation increased quite significantly in the food group, but rose slightly in the services group, Kavcıoğlu said that producer inflation continued to rise due to commodity prices, disruptions in the supply chain and demand conditions. CBRT Chairman Şahap Kavcıoğlu stated that the weight of food in the consumption basket and domestic food inflation may differ between countries, "The increase in food prices affects inflation at different rates in different countries. When an evaluation is made between countries, Turkey is one of the countries where prices have increased the most. We see that food inflation in August was considerably higher than the average of the last 3 years," he added.
"Exorbitant prices" and "high inflation" are on everyone's agenda, from the President to the citizens on the street, but no roadmap has yet been set for a solution. In addition to all of these, the seat was finally entrusted to Şahap Kavcıoğlu, following the successive changes in the Presidency of the Central Bank after the interest was based on 20 percent. President of the Central Bank of the Republic of Turkey Prof. Dr. Şahap Kavcıoğlu, on the other hand, stated that the Central Bank's monetary policy alone is not enough to reduce inflation and said, "All segments must take responsibility for the increase in food prices."
50 BILLION DOLLARS EXPECTED IN ONE YEAR
Speaking to Barış Soydan from T24, Kavcıoğlu says that with the measures taken, in addition to the Central Bank reserves, approximately 50 billion dollars will be paid within a year. Şahap Kavcıoğlu states that the Turkish lira, which is given with rediscount loans, has become a factor that increases the demand for foreign currency from time to time. He emphasizes that this amount creates demand for foreign currency twice, both at the time of the first issuance and when the repayment is due. Stating that the Central Bank's monetary policy alone is not enough to reduce inflation, Kavcıoğlu calls for "all sectors should take responsibility for the increase in food prices".