Erdoğan’s economy adviser hopes Moody’s, Fitch give Turkey fair rating
ANKARA - Anadolu AgencyInternational rating agencies Moody’s and Fitch will tarnish their own reputations if they declare negative ratings for Turkey’s economy, the chief economic adviser to Turkey’s president told Anadolu Agency on Aug. 1.
“I believe these agencies will not declare a negative rating that may disturb their reputation considering the positive macroeconomic indicators of Turkey’s economy,” Cemil Ertem said.
Ertem’s comments came after Moody’s announced on July 18 it would review Turkey’s rating for a possible downgrade following the July 15 failed coup attempt.
According to Ertem, the public’s response to last month’s failed coup bid should overcome the risks highlighted by international rating agencies.
Turkey survived a deadly coup attempt on July 15 by rogue elements within the military that killed more than 230 people and injured nearly 2,200 others.
Turkey’s government has repeatedly said the coup attempt was organized by U.S.-based Islamic scholar Fethullah Gülen and his Fethullahist Terrorist Organization (FETÖ).
Ertem also predicted the U.S. dollar would stay below the psychological level of 3.00.
“The psychological boundary for the dollar/TL [Turkish Lira] ratio is three [liras], and one dollar had come below three liras when the markets closed on Friday. I think the ratio will continue to stay below this,” he said.
According to analysts, moves by the Turkish economic administration to limit the effects of the July 15 coup bid on the economy also helped the lira’s recovery against the dollar.
The adviser also voiced the Turkish government’s intention to form a sovereign wealth fund.
“There are various public funds like the unemployment benefit fund and the others, whose total value is over $100 billion. Turkey may utilize these funds actively without breaking the budget discipline.
“A separate wealth fund would be set up as well. These issues will be examined by Turkish officials. But, it is certain that this is going to be done,” he said.