Türkiye's 2027 inflation target in its medium-term program is regarded as realistic by markets, provided that the Iran war does not continue next year, Finance Minister Mehmet Simsek said in an interview with broadcaster Haberturk on Wednesday. Türkiye should normally operate a floating exchange rate regime, as it provides the basis for responding correctly to shocks, Simsek said. Türkiye has always provided wage increases of at least the rate of inflation for all public workers and retirees, and will continue to do so, he added. Once inflation falls to single digits, mandatory export proceeds sales requirements could be lifted in favor of a freer regime, he also said. Conditions for removing the mandatory export sales requirement have not yet been met and Türkiye will review the matter when they arise. The government expects inflation to slow to 28.4% this year and to 21% in 2027 before dropping to single digits in 2029 — about two years later than previously predicted. The US-sanctioned Golden Global Yatirim bank is small and poses no systemic risk, Simsek also said, calling on other banks to comply with international regulations and strengthen compliance.
