The Central Bank of the Republic of Turkey (CBRT) has released its 2024 Monetary Policy report, outlining its objectives and expectations for the year. The 13-page document also details the number of meetings scheduled for 2024, as well as evaluations concerning the Turkish Lira and foreign exchange.
In the section on monetary policy and communication, the report emphasizes the commitment to maintaining price stability, with an inflation target set at 5%. The report also includes the dates for the Monetary Policy Committee meetings, which are scheduled throughout the year, from January 25 to December 16, 2024. Additionally, inflation reports will be released on February 8, May 9, August 8, and October 31, while Financial Stability reports will be published on May 31 and November 29.
The CBRT states that the simplification process within the current macroprudential framework will continue in 2024. This process involves evaluating the impact of various components, including inflation, interest rates, exchange rates, reserves, expectations, and financial stability, based on thorough impact analyses.
For 2024, the Central Bank aims to prioritize Turkish Lira deposits within the banking system, targeting an increase in their share to 50% and a continuation of the decline in the balance of Deposit Protection Scheme.
The CBRT emphasizes the strengthening of international reserves to enhance the effectiveness of monetary policy and ensure financial stability. The reserves have shown a strong upward trend since the second half of 2023, reaching $145.5 billion as of December 22, 2023. The bank intends to continue this strategy of accumulating reserves as market conditions allow, ensuring a steady increase in international reserves.
Lastly, the Central Bank plans to take additional facilitating steps in rediscount credits for export and foreign exchange-generating services in 2024. These measures aim to improve financing conditions for exporting firms and support their access to finance.