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

Speaking at the 2025 World Government Summit (WGS 2025) in Dubai, United Arab Emirates, Minister of Treasury and Finance, Mehmet Şimşek discussed the emergence of “Multiple Economic Blocs” in a session. Şimşek pointed out the complexity of the global landscape, emphasizing that reasonable policies and structural transformation are the best ways to build resilience. He expressed 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 regions. So, I believe we are somewhat less fragile.” Turkey has a three-year economic program in place and it is progressing well, according to Şimşek. He continued to say, “We are maintaining budget discipline, and we are in a disinflation process. Inflation is decreasing. We talk about a combination of tight monetary policy, fiscal policy, and a very broad structural reform agenda. These are crucial in the short and long term. We continue to maintain our policy determination, and I believe progress is steadily strengthening.”

“Turkish Lira’s Good Performance”
Regarding a question about the Turkish Lira’s performance against the dollar, Minister of Treasury and Finance, Şimşek, explained that the nominal weakening of the lira due to high inflation is understandable, adding, “But in terms of real effective exchange rate, the lira was actually one of the well-performing currencies as disinflation programs provide some level of appreciation, and this happened with the lira too.” Şimşek mentioned that the significant improvement in Turkey’s current account balance is good news, with the current account deficit falling to 0.6% of the national income. He also highlighted that reserves have increased by about 126 billion dollars in the last one and a half years, creating several buffers against economic shocks.

“How Would US Tariffs Affect Turkey?”
In response to a question about the impact of US customs tariffs on Turkey, Şimşek stated that Turkey did not expect to be in the headlines due to US tariffs since Turkey is already subjected to high customs duties by the US. He also mentioned that Turkey has had a trade deficit with the US over the past 20 years. Thus, unless there is a political issue, Turkey does not actually meet the necessary criteria to be subjected to high US customs duties.

“Regional Integration is Crucial”
Minister Şimşek explained that despite the lack of political will in the EU, Turkey continues its accession process and remains fully integrated into various organizations, including the Customs Union, the Council of Europe, and NATO. He emphasized Turkey’s commitment to investing in regional integration in a fragmented world, underscoring its importance for the country’s interests. Şimşek stated, “Therefore, we want to establish a free trade agreement with the Gulf Cooperation Council (GCC) and we want Syria to achieve stability. 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 customs unions or free trade areas. Therefore, we should not dwell on these but understand that the world is changing. I believe that regional integration is crucial in combating vulnerabilities arising from fragmentation.”