Dear Press Members,
I have been appointed Governor of the Central Bank, which was
vacated by Former Governor Mr.
Süreyya Serdengeçti due to his retirement
after having completed his five-year term on 14 March 2006
at the end of the business hours, and which has been filled
temporarily by Dr. Erdem Basc_ı as Acting
Governor since then.
I have worked in various positions of the Central Bank of the
Republic of Turkey since 1980. As you
have been closely following, many achievements have been made
since then, especially in the last
couple of years, that will always be remembered as the turning
points in our economic history.
Distinguished members of the press,
As a result of the legal amendments made in 2001, the greatest
achievement in the area of monetary
policy has been the attainment of the Central Bank
The Bank shall, with the objective to achieve and
maintain price stability, be authorized to utilize
monetary policy instruments described in this Law and shall
also be authorized to directly determine
and implement other monetary policy instruments that it deems
appropriate. as expressed in the Law
on the Central Bank.
Such an authorization is called instrument
independence in the modern economic literature.
On the way to price stability, the inflation target is
determined jointly with the government. As you
know, these targets have been determined and announced as
5 percent for 2006,
4 percent for 2007,
4 percent for 2008
Our primary objective is to attain these targets. The Central
Bank will support the growth and
employment policies of the Government, unless it conflicts with
Likewise, with the Law No: 1211, the Central Bank has been
entrusted with the power of establishing
the exchange rate regime jointly with the
government. The floating exchange rate regime, which was
introduced within this framework, will continue to be
implemented, preserving its basic implementation
Turkey has grasped a golden opportunity to get rid of the
damage created by inflation with which it has
had to live more than 30 years. The period of
Declining inflation is about to end. Our
will be to achieve and preserve the price stability. This will
be the most significant contribution of the
Central Bank in mobilizing the growth potential of our country.