Türkiye’s Central Bank plans to increase its international reserves as long as market conditions remain favorable, in line with the country’s newly introduced pre-accession economic reform program.
According to the program prepared by Türkiye’s Presidency of Strategy and Budget and covering the 2026-2028 period, the bank will continue to prioritize financial stability while managing its reserves with an emphasis on safety, liquidity and return, The Caspian Post reports, citing Anadolu.
The bank will base its policy decisions on detailed analyses of prices, inflation forecasts, pricing behavior, demand factors influenced by policy, supply developments, internal and external balance dynamics, savings trends and overall financial conditions, including credit.
The bank said it will maintain a policy stance aligned with the medium-term inflation target of 5% to ensure the disinflation process remains on track.
To strengthen guidance and accountability, the bank will include year-end-focused interim targets in its quarterly inflation forecasts. Interim inflation targets for 2025, 2026 and 2027 were set at 24%, 16% and 9%, respectively, and may be updated between reporting periods.
If year-end inflation deviates from interim targets, the bank said it will provide a detailed assessment in the first report of the following year.
The inflation targeting regime will continue this year to place price stability on a sustainable footing, while a tight policy stance will be maintained until stability is achieved. The bank said this approach will support disinflation through demand, exchange rate and expectation channels.
Policy decisions will be taken in line with interim targets, while also considering realized inflation, underlying trends and expectations. If the inflation outlook deviates significantly from interim targets, further tightening will be implemented.
The bank said it will continue policies aimed at strengthening the monetary transmission mechanism, ensuring interest rates move in line with policy rates. Additional macroprudential measures may be introduced if credit and deposit developments diverge from expectations.
Liquidity conditions will be closely monitored, and liquidity management tools will be used effectively.
The program reaffirmed that Türkiye will maintain a floating exchange rate regime, with rates determined by supply and demand in free market conditions.
The bank said it has no fixed exchange rate target and will not conduct foreign exchange transactions to determine the level or direction of exchange rates, but will take necessary measures to ensure the smooth functioning of foreign exchange markets.
The central bank will continue to manage its international reserves with a focus on safe investments, liquidity and return, the program said.
