TRNC Minister of Economy want business owners to reduce the price of goods to reflect the current exchange rate

The TRNC Minister of Economy and Energy, Sunat Atun, has called on business owners to immediately reduce the price of goods to reflect the current exchange rate.

Sunat Atun in a statement on Wednesday, stated that the expensiveness in the market should return to its previous levels with the increase in foreign exchange, and called on the whole business world to quickly re-establish the price formation processes. 

In his written statement, Atun noted that as the Ministry of Economy and Energy, they will be a close follower and inspector of this.  

Pointing out that the "encouragement of the use of TL" package announced by the President of the Republic of Turkey, Recep Tayyip Erdoğan, is a very important step towards ensuring monetary stability against inflation and other macroeconomic negative effects caused by exchange rate increases.

He further stated that the "currency-protected TL futures" package was implemented in this context. 

He also stated that the “Deposit Deposit” product constitutes an important area for the stability of the TL and the predictability of the economy. 

Stating that the TL gained around 15 percent in two days, Atun said: “Besides, in order to ensure the productivity of the economy, the policy rates, which were lowered with the aim of reducing the cost of resources and thus increasing the investment, employment and naturally the national income, had to be followed by the loan interest rates. We observe that the TR-Ref index, which represents loan reference interest rates, is also declining. 

We believe that the new package, which is an important component of the New Economic Program, will bring balance and predictability to the Economy. In this context, we agree with the expectation that the Turkish Lira will start to follow a stable level in the short term.

It is of great importance for us to include our country in the scope of application of this important product, to protect the purchasing power of our citizens by ensuring price stability, to ensure the predictability of our country's economy and not to reduce the TL savings. In this context, our Prime Minister, Mr. With the directives of Faiz Sucuoğlu, necessary studies were initiated.

With the TL reaching balanced levels, the cost of many input elements will also decrease in our country. As the Ministry, we follow the dynamics that make up the energy price very closely in this context. It is predicted that the energy cost, which is created according to daily averages, will decrease in the near future. In this case, the foresight problem faced by both the manufacturer and the importer in price formation will be eliminated. In addition, with the increase in foreign exchange, the expensiveness in our markets should return to its previous levels. At the same time, we invite the entire business world to rapidly re-establish the price formation processes. As the Ministry of Economy and Energy, we will closely monitor and inspect it.”