Minister of Treasury and Finance, Mehmet Şimşek, mentioned that Turkey could be more resilient against the divisions in global trade. Şimşek stated that the Turkish Lira is among the currencies showing the best performance against the dollar.

Minister of Treasury and Finance, Mehmet Şimşek, spoke at the 2025 World Government Summit (WGS 2025) in Dubai, United Arab Emirates, in a session titled “The Emergence of Multiple Economic Blocs.” Mentioning the complicated situation of the global landscape, Şimşek expressed that reasonable policies and structural transformation are the best way to build resilience. Şimşek suggested that Turkey could be more resilient against the divisions in global trade, stating, “Because about 62% of our trade is with countries we have free trade agreements with, and 80% is with the European Union, Central Asia, the Middle East, and North Africa. So, I think we are partially less fragile.” Turkey has a three-year economic program, and Şimşek noted that the program is progressing as planned. He continued his speech by saying, “We are maintaining budget discipline, we are in a deflationary process. Inflation is decreasing. We are talking about a tight monetary policy, fiscal policy, and a very broad structural reform agenda. These are crucial in the short and long term. We are continuing our determination in policies, and I believe progress is gradually strengthening.”

“TURKISH LIRA SHOWS GOOD PERFORMANCE” Minister of Treasury and Finance, Şimşek, on a question about the performance of the Turkish Lira against the dollar, expressed that the depreciation of the lira due to high inflation is understandable, but when looking at the real effective exchange rate, the lira was one of the currencies showing good performance because deflation programs to some extent lead to appreciation, and this situation also occurred in the lira. Şimşek stated that the significant improvement in Turkey’s current account balance is good news, sharing that the current account deficit dropped to 0.6% of the national income. Mentioning that the reserve accumulation has increased by around 126 billion dollars in the last 1.5 years, Şimşek noted that many buffers have been created against shocks in the economy.

HOW DO THE US TARIFFS AFFECT TURKEY? When asked about the impact of U.S. customs tariffs on Turkey, Şimşek expressed that Turkey did not expect to be in the “headlines” due to the US tariffs because they are already subjected to high customs duties by the US. Also, when looking at the last 20 years, we have a total trade deficit with the USA. Therefore, unless it is political, we do not actually meet the necessary criteria to be subjected to high customs duties by the U.S. assessment.

“REGIONAL INTEGRATION IS KEY” Minister Şimşek explained that despite the lack of political will in the EU, Turkey’s membership process is ongoing. He mentioned that Turkey continues to fully integrate into many other organizations, including the Customs Union, the Council of Europe, and NATO. In a fragmented world, Minister Şimşek mentioned that Turkey will invest in regional integration, which is in the country’s interests. He added, “Therefore, we want to establish a free trade agreement with the Gulf Cooperation Council (GCC) and we want stability in Syria. We have good relations with Russia, but Europe is our main partner. Despite some political suspicions, our relations with Europe are strong. On the other hand, BRICS is a dialogue platform, as is the G20. These are not a customs union or a free trade area.

Therefore, we should not dwell on these too much but understand that the world is changing. I believe that regional integration is crucial to deal with vulnerabilities arising from fragmentation.”