Turkish banking association's head says CB's measures in line with current conjuncture

ISTANBUL (A.A) - July 27, 2011 - The head official of a leading Turkish banking association said on Wednesday that the Turkish Central Bank's latest decisions and measures concerning the banking sector might be deemed different and extraordinary, however, they were in line with the current conjuncture.
Huseyin Aydin, the head of The Banks Association of Turkey (TBB) and Director General of Ziraat Bankasi, commented on the developments in Turkish banking sector during a press conference in Istanbul.
Regarding the recent volatility in the markets and foreign exchange rates, Aydin said that current account deficit was a long-term structural problem and authorities had been taking the necessary measures on the matter.
"The impact of exchange rates and the slowdown in loans will surely have a positive effect on the current account deficit. On the other hand, the positive progress in macroeconomic indicators such as budget deficit and debt stock eliminates the vulnerability of the current account deficit," Aydin said.
"Turkish lira is a stable currency. We believe this stability would continue," he added.
Upon a question on Central Bank's monetary policy, Aydin pointed out the bank's high competence in interpreting the markets and economy and said that its policies were accurate and appropriate.
"The decisions taken by Central Bank in the current phase may be different and extraordinary compared to the past, however, we believe they are in line with the present conjuncture," the official said.
"We do not expect any severe downfall in economy," Aydin noted.