Mr.Dervis predicts leveling of exchange rate
Turkish Economy Minister Kemal Dervis predicted that exchange rates will hit a level reflecting their real value in the near future. Analysts report this is an indication that the lira will weaken. Mr.Dervis expressed concern that the lira is overvalued against the dollar in a manner that would be a danger to Turkish export-led recovery prospects. Derviş told Turkish businessmen this month that it was only the Central Bank's job to adjust exchange rates and that they are doing a fine job. He added that currently overvalued currency would settle between current levels and 2001 highs. Dervis explained that a strong currency supports Turkey's disinflation efforts and would bring positive benefits in the near future. He added that March and April saw a resumption in economic growth and that a growth of 3 percent for 2002 is not overly optimistic but in fact, achievable. A growth target of 4 percent would be a bit overly optimistic Derviş hinted. The most important factor is for relations between employees and the government to remain on stable ground, Dervis remarked. Derviş explained that the worst of the economic crisis has passed and that a strong fiscal policy has been successfully implemented. He criticized officials who do not want to follow the monetary program set forth by the government by calling for them to resign if they were unwilling to realize the efficacy of IMF-backed policies.