Turkey will never submit its economic future to IMF: President Erdogan

ANKARA

Turkey will never leave its political and economic future to the "prescriptions" of global economic institutions like the IMF, the country's president vowed on Wednesday.

"Turkey will never again submit its political and economic future to the prescriptions of global economic tutelage institutions, such as the IMF and similar institutions," Recep Tayyip Erdogan told his Justice and Development (AK) Party's parliamentary group.

Ruling out an economic policy based on high interest and low exchange rates, which he called a system of exploitation that would never return to Turkey, Erdogan said: "Our aim is to build an economic structure that will produce more, earn more, and transfer what it gains to areas that will benefit the whole nation and increase welfare and hope."

Recent jumps in inflation and losses in the value of the Turkish currency, the lira, have led opposition parties to attack the government's economic policy, including interest rate cuts.

Erdogan has said the rate cuts were part of his "new economic model" and a "war of economic liberation" for Turkey.

"Interest rates are the reason, inflation is the result," Erdogan has argued repeatedly, pledging that his policies will lead to high growth and broad-based prosperity.

The Turkish president urged calm among the public, asking them "not to stray from common sense" when buying foreign currency, setting prices, and shopping.

Erdogan also promised additional measures to help low-income citizens "whose purchasing power has decreased."

On intervention by Turkey's Central Bank earlier on Wednesday, Erdogan underlined the bank's authority to take such action as it is governed by its own law.

"It has such a right when such a thing is necessary. The Central Bank makes such interventions and has the right to do so," he said.

Turkey's Central Bank on Wednesday said it has intervened in the market via selling transactions due to "unhealthy" price formations in exchange rates, according to a statement by the bank.

The announcement came amid fluctuating foreign exchange rates.

Following the move, the Turkish lira gained 6.27% against the US dollar, reaching 12.65 after a historic low of 14.05

The Central Bank made its last direct foreign exchange intervention in January 2014 with a sale of $3.15 billion.